Article ID Journal Published Year Pages File Type
5059581 Economics Letters 2013 4 Pages PDF
Abstract
► The paper analyzes forward trading oligopolists with increasing marginal costs. ► The standard result that forward trading implies social efficiency no longer holds. ► Increasing marginal costs diminish strategic substitutability of quantities. ► This softens competition and creates/increases rents for forward trading firms.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Increasing marginal costs are strategically beneficial in forward trading
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