Title

Insurance, Flexibility and Non-contingent Trades

Authors

Russell Cooper

Document Type

Discussion Paper

Publication Date

2-1-1984

CFDP Number

691

CFDP Pages

33

Abstract

This paper considers non-contingent trades through either forward markets or simple contracts. The point of the inquiry is to understand the costs and benefits of trades of this nature. We focus on the tradeoff between insurance (a benefit) and the loss of flexibility in decisions (a cost) as determining properties of trading in forward markets. This tradeoff is also used to explore contract length.

This document is currently not available here.

Share

COinS