Hedging Scenarios Under Competition: Exploring the Impact of Competitors' Hedging Practices
Küçük Resim Yok
Tarih
2017
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Springer International Publishing Ag
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
Hedging without giving regard to what competitors are doing may actually increase the variance of profits as opposed to decreasing it. In this study, a market maker and an individual firm are taken as the players of a simultaneous game. We explore the impact of competitors' hedging practices on the optimal hedging policy of an individual firm by explicitly considering the other factors such as the level of pass-through of cost shocks and the level of profitability in the industry. Computational results are based on the simulations of an analytical model which incorporates a Nash equilibrium strategy.
Açıklama
Anahtar Kelimeler
Substitutable Product, Currency Derivatives, Inventory Control, Demand, Exposure, Industry, Model
Kaynak
Risk Management, Strategic Thinking and Leadership in The Financial Services Industry: A Proactive Approach to Strategic Thinking
WoS Q Değeri
N/A
Scopus Q Değeri
Q4
