We develop a behavioral commodity market model with consumers, producers andheterogeneous speculators to characterize-tile-nature of commodity price fluctuations and toexplore the effectiveness of price stabilization schemes. Within our model, we analyze hownonlinear interactions between market...

It is known that simple price limiters may have unexpected consequences inirregular commodity price fluctuations between bull and bear markets andcomplicated impacts on the size of buffer stocks. In particular, imposinga lower price boundary may lead to a huge buffer stock, e.g. to a...