Price Pooling and the Gains from Hedging: Application to a Swedish Grain Cooperative

Optimal hedging strategies are analyzed for a cooperative operating a price pooling system in the presence of price and quantity risk. A three-period model, accounting for default risk and storage, is developed. Hedging allows the cooperative to increase the pool price offered to farmers by 2.8 - 4% for moderate risk parameters.

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Year of publication:	2001
Authors:	Johnson, D. Demcey ; Nilsson, Tomas K.H. ; Andersson, Hans
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	Agribusiness \| Marketing

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Extent:	application/pdf
Series:	2001 Annual meeting, August 5-8, Chicago, IL.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2001 Annual meeting, August 5-8, Chicago, IL Number 20554
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005503615