In this paper, we examine the process of risk commodification involved in the creation of a market for weather … process by which promoters try to draw weather risk into the financial world. By offering a concrete description of a … occur. We conclude that there are limits to the thesis of financial theory, according to which all kinds of risk can be …

In this paper, we examine the process of risk commodification involved in the creation of a market for weather … process by which promoters try to draw weather risk into the financial world. By offering a concrete description of a … occur. We conclude that there are limits to the thesis of financial theory, according to which all kinds of risk can be …

their risk-neutral value. This is nevertheless in stark contrast with a common finding of standard models based on the … value to risk-neutral outside investors. In particular, I proved that loss aversion and probability weighting have …

the impact of forward markets and vertical integration on prices, risk premia, and retail market shares. We point out that … forward hedging and vertical integration are two separate mechanisms for demand and spot price risk diversification that both … producers and retailers exposure to demand risk, whereas linear forward contracts do not. Vertical integration is superior to …

risk management. We develop an equilibrium model that fits electricity markets well. We point out that vertical integration … and forward hedging are two separate levers for demand and spot price risk diversification. We show that they are … highly risk averse downstream agents, vertical integration may be a better way to diversify risk than spot, forward and …

ready-made approaches to risk management analysis. However, EVT is usually applied to standardized returns to offer more …