On uncertainty when it affects successive markets.
(2009) , 8 pages
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- Authors
- Abstract
- In this paper, we examine how uncertainty can affect successive markets, when uncertainty can jointly influence both the upstream and downstream markets' conditions. The main result of the paper is that the equilibrium input and output quantities under stochastic dependence can be higher or lower than the corresponding quantities in the case of certainty equivalence depending on how much dependent are the events.
- Affiliations
Università La Sapienza di Roma DTE University of Luxembourg CREA
Citations
Jaskold Gabszewicz, J., Tarola, O., & Zanaj, S. (2009). On uncertainty when it affects successive markets. (Core Discussion Papers 2009/27). https://hdl.handle.net/2078.5/249381