It is widely understood that the real price of globally traded commodities is determined by the forces of demand and … supply. One of the main determinants of the real price of commodities is shifts in the demand for commodities associated with …

steel, the trade flows result more from short-term regional disequilibria between supply and demand than from international …

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility … depends on the consumers' rational price expectations from the recent past. By implication, demand responses are more elastic …