Market Structure, Risk Preferences, and Forward Contracting Incentives*

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2023-10-24 DOI:10.1111/joie.12352

David P. Brown, David E. M. Sappington

引用次数: 1

Abstract

We examine the determinants of the levels of forward contracting preferred by generators and buyers of electricity. Increased forward contracting systematically reduces the variance of a generator's profit, so a generator prefers higher levels of forward contracting as market uncertainty or its aversion to risk increases. In contrast, increased forward contracting can either increase or reduce the variance of a buyer's profit. Consequently, a buyer can prefer either reduced or increased levels of forward contracting as market uncertainty or its aversion to risk increases.

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市场结构、风险偏好和远期合约激励措施 *

我们研究了发电商和电力买家偏好的远期合约水平的决定因素。远期合约的增加会系统性地降低发电商利润的方差，因此随着市场不确定性的增加或发电商对风险厌恶程度的提高，发电商会选择更高水平的远期合约。相反，增加远期合约既可以增加也可以减少买方利润的方差。因此，随着市场不确定性的增加或买方对风险厌恶程度的提高，买方可以选择减少或增加远期合同。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.