Simulating the Impacts of Contract Supplies in a Spot Market‐Contract Market Equilibrium Setting
构建一个嵌入委托代理模型的市场均衡模型，分析合约供给对生猪现货市场价格的影响，发现合约供给增加可能提高或降低现货价格，取决于合约供给的相对规模。
This article embeds a principal‐agent model within a market equilibrium model of contract and cash markets to analyze the impact of contracting on the spot market for hogs. The equilibrium model incorporates both quality differentiation in the contract market and an endogenously determined cash market price. For three types of contracting scenarios, market equilibrium conditions are derived, and results are presented for a numerical example. Contrary to some empirical results, our model shows that the increased supply of hogs under typical formula‐price contracts can increase or decrease the cash market price, depending on the relative size of overall contract supplies.