Chemla, Gilles; Porchet, Arnaud; Touzi, Nizar; Aïd, René - Université Paris-Dauphine (Paris IX) - 2009
and forward hedging are two separate levers for demand and spot price risk diversification. We show that they are … risk management. We develop an equilibrium model that fits electricity markets well. We point out that vertical integration … highly risk averse downstream agents, vertical integration may be a better way to diversify risk than spot, forward and …