Broll, Udo; Welzel, Peter; Wong, Kit Pong - In: Contemporary Economics 7 (2013) 2, pp. 17-20
This note studies the risk-management decisions of a risk-averse farmer. The farmer faces multiple sources of price uncertainty. He sells commodities to two markets at two prices, but only one of these markets has a futures market. We show that the farmer's optimal commodity futures market...