Kim, Seong-Hoon; Moon, Seongman - Agricultural and Applied Economics Association - AAEA - 2012
In this paper, we consider who faces uninsurable business risks due to incomplete spanning of asset markets over … stochastic goods market outcomes, and examine how the presence of the uninsurable business risks affects the producer's optimal … 'markup' to the extent of market power and 'premium' by shadow price of the risks; (2) price inertia as we observe in data can …