search query: @author Boussard, J.-M. / total: 1
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| Author: | Boussard, J.-M. |
| Title: | When risk generates chaos |
| Journal: | Journal of Economic Behavior and Organization
1996 : MAY, VOL. 29:3, p. 433-446 |
| Index terms: | ECONOMICS PRICES BUSINESS CYCLES |
| Language: | eng |
| Abstract: | With risk averse producers, the traditional linear cobweb model becomes nonlinear. The currently produced quantity is an homographic function of previous years quantities. This may result in the market generating chaotic price and quantity series, especially if demand is rigid. Hedging facilities are unable to reduce the magnitude of fluctuations, which are socially detrimental especially from the consumers' point of view. This might justify public intervention on markets such as staple food commodities or health cares. |
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