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The relentless progress of commodity exchanges in the establishment of primary commodity prices

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  • Radetzki, Marian

Abstract

A continuously expanding group of commodities are being priced on commodity exchanges. This paper explains the causes to the increasing preference of exchanges as pricing instruments. It also provides the detail of the shift in the 1970s and 1980s from producer determined prices to prices set by commodity exchanges for three major commodities—aluminum, nickel and petroleum.

Suggested Citation

  • Radetzki, Marian, 2013. "The relentless progress of commodity exchanges in the establishment of primary commodity prices," Resources Policy, Elsevier, vol. 38(3), pages 266-277.
    • Handle: RePEc:eee:jrpoli:v:38:y:2013:i:3:p:266-277
    DOI: 10.1016/j.resourpol.2013.04.001
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    References listed on IDEAS

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    1. Cairns, Robert D., 1982. "The measurement of resource rents : An application to Canadian nickel," Resources Policy, Elsevier, vol. 8(2), pages 109-116, June.
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    3. Tilton, John E. & Humphreys, David & Radetzki, Marian, 2011. "Investor demand and spot commodity prices," Resources Policy, Elsevier, vol. 36(3), pages 187-195, September.
    4. Radetzki,Marian, 2008. "A Handbook of Primary Commodities in the Global Economy," Cambridge Books, Cambridge University Press, number 9780521880206, Junio.
    5. Hubbard, R Glenn & Weiner, Robert J, 1992. "Long-Term Contracting and Multiple-Price Systems," The Journal of Business, University of Chicago Press, vol. 65(2), pages 177-198, April.
    6. Smith,George David, 1988. "From Monopoly to Competition," Cambridge Books, Cambridge University Press, number 9780521352611, October.
    7. Rafati, Mohammed R., 1982. "An econometric model of the world nickel industry," Kiel Working Papers 160, Kiel Institute for the World Economy (IfW Kiel).
    8. Margaret E. Slade, 1991. "Market Structure, Marketing Method, and Price Instability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1309-1340.
    9. Telser, Lester G, 1981. "Why There Are Organized Futures Markets," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 1-22, April.
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    Cited by:

    1. Maxwell, Philip, 2015. "Transparent and opaque pricing: The interesting case of lithium," Resources Policy, Elsevier, vol. 45(C), pages 92-97.
    2. Roche, Julian Spencer, 2020. "Success criteria for commodity exchanges," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 15(2), June.

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