Technology and Hedging Behavior: A Proof of Hicks' Conjecture
American Economic Review
1985
Technical conditions give the entrepreneur a much freer hand about the acquisition of inputs (which are largely needed to start a new process) than about the completion of outputs (whose process of production-in the ordinary business sense-may be already begun). If forward markets consisted entirely of hedgers, there would always be a tendency for a planned weakness on the demand side; a smaller proportion of planned purchases than of planned sales would be covered by forward contracts. [1946, p. 137]
- Export
- BibTeX
- Sources
- openalex