Spatial Competition, Arbitrage, and Risk in U.S. Soybeans

This paper analyzes spatial arbitrage and vertical integration of a U.S. soybean-trading firm. A risk-constrained optimization model using Monte Carlo simulation and copula joint distributions is specified. Results show that spatial-arbitrage payoffs vary regionally. Sensitivity results indicate that payoffs and risks increase as firms become more vertically integrated.


Issue Date:
2015-09
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/210550
Published in:
Journal of Agricultural and Resource Economics, Volume 40, Number 3
Page range:
442-456
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-22

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