TY  - UNPD
A1  - Muermann, Alexander
A1  - Shore, Stephen H.
T1  - Monopoly power limits hedging
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,37
N2  - When a spot market monopolist participates in a derivatives market, she has an incentive to deviate from the spot market monopoly optimum to make her derivatives market position more profitable. When contracts can only be written contingent on the spot price, a risk-averse monopolist chooses to participate in the derivatives market to hedge her risk, and she reduces expected profits by doing so. However, eliminating all risk is impossible. These results are independent of the shape of the demand function, the distribution of demand shocks, the nature of preferences or the set of derivatives contracts.
T3  - CFS working paper series - 2008, 37 
KW  - spot market power
KW  - derivates market
KW  - hedging
Y1  - 2008
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/6060
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-60646
ER  -