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) : Radner,Roy

Report Date : APR 1967

Pagination or Media Count : 33

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)

Descriptors :   (*MANAGEMENT PLANNING AND CONTROL, *ECONOMICS), MATHEMATICAL MODELS, PREDICTIONS, OPTIMIZATION, COSTS

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE