Accession Number:

AD0654901

Title:

EQUILIBRIUM OF SPOT AND FUTURES MARKETS UNDER UNCERTAINTY.

Descriptive Note:

Technical rept.,

Corporate Author:

CALIFORNIA UNIV BERKELEY CENTER FOR RESEARCH IN MANAGEMENT SCIENCE

Personal Author(s):

Report Date:

1967-04-01

Pagination or Media Count:

33.0

Abstract:

The relation between equilibrium and optimum under uncertainty is explored in a model of an economy with spot markets at each date and with an incomplete system of futures markets for delivery contingent on future events. An equilibrium is a consistent set of plans, spot prices, and conditional forecasts of future prices. For the economy to achieve an optimum relative to a given structure of information, economic agents must be able to buy insurance against changes in spot prices. The role of spot prices as information signals is emphasized. Author

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE