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Full-Text Articles in Finance and Financial Management
Innovation In Futures Markets: Event Contracts, Speculation, And Hedging, Fabio Mattos
Innovation In Futures Markets: Event Contracts, Speculation, And Hedging, Fabio Mattos
Cornhusker Economics
The CME Group has recently launched a new type of contract whose payoffs are based on specific events. These contracts are called event contracts but are also known as prediction contracts or information contracts. They are short-term contracts that expire at the end of each trading day. Traders can take positions in these contracts as they predict whether the price of a given asset will finish the trading day above or below a set value.
Discusses: How are they traded? Main characteristics of event contracts. Event contracts offered by CME group and event examples on October 21, 2022. Why were …
On The Market For "Lemons": When Low Quality Does Not Drive High Quality Out Of The Market, Konstantinos Giannakas, Murray E. Fulton
On The Market For "Lemons": When Low Quality Does Not Drive High Quality Out Of The Market, Konstantinos Giannakas, Murray E. Fulton
Cornhusker Economics
In a research article published in Nature's Humanities and Social Sciences Communications (available at https://www.nature.com/articles/s4l 599-020-00658-w) we identify the conditions under which the introduction of a low -quality product does not drive its high-quality counterpart out of the market but, instead, ends-up coexisting with it. Using a theoretical framework of heterogeneous consumers and producers in the context of a market for quality- ( or vertically-) differentiated products supplied by producers differing in their production efficiency, we show that the equilibrium quality configuration in a market depends on both the unobservability of product quality by consumers and the relative costs …
Inflation: Just How Bad Is It?, Timothy Meyer
Inflation: Just How Bad Is It?, Timothy Meyer
Cornhusker Economics
Amidst the chaotic news cycle of politics, the pandemic, and global affairs, a new topic is making headlines – inflation. To some, rising inflation causes greater fear than the other headlines combined; to others, it is nothing more than a minor nuisance. This article will explain why people’s divisive attitudes toward inflation are likely justified.