This paper examines equilibrium in a spot and futures market with both primary producers (growers) and intermediate producers (processo rs). For a commodity that is subject to output shocks, processors tend to hedge long, in contrast with J. R. Hicks's theory of futures hedging. Nevertheless, if...

An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual with regard to his own information. The authors argue that localized conformity of behavior and the fragility of mass...

This paper presents a model of tender offers in which the bid perfectly reveals the bidder's private information about the size of the value improvement that can be generated by a takeover. The authors argue that bidders with greater improvements will offer higher premia to ensure that...