Commodity markets are characterized by large volumes of forward contracts as well as high volatility. They are often accused of weak competitive pressure. This article extends the existing literature by analyzing tacit collusion of firms, forward trading and volatility simultaneously. The...

I model the optimal semi-collusive strategy of firms using forward contracts in volatile markets. It has been shown that forward contracts can be used to stabilize a collusive agreement under deterministic (Liski and Montero, 2006) as well as under stochastic market conditions (Aichele, 2012)....

We study revenue volatility of a monopolist selling a divisible good to consumers in the presence of local network externalities among consumers. Each consumer's utility depends on her consumption level as well as the consumption levels of her neighbors in a network through network...