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Speculation and Equilibrium: Information, Risk, and Markets

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  • J. Hirshleifer

Abstract

I. Price risk versus quantity risk, 520. — II. Noninformative equilibrium: simple consumptive gamble, 525. — III. Informative equilibrium: prior-trading optimum and compound consumptive gamble, 529. — IV. Conclusion: determinants of speculative-hedging behavior, 538. — V. Limitations and generalizations, 540.

Suggested Citation

  • J. Hirshleifer, 1975. "Speculation and Equilibrium: Information, Risk, and Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(4), pages 519-542.
    • Handle: RePEc:oup:qjecon:v:89:y:1975:i:4:p:519-542.
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    References listed on IDEAS

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    1. Leland L. Johnson, 1960. "The Theory of Hedging and Speculation in Commodity Futures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 27(3), pages 139-151.
    2. Rockwell, Charles S., 1967. "Normal Backwardation, Forecasting, and the Return to Commodity Futures Traders," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 7(Supplemen), pages 1-24.
    3. Jack Hirshleifer & Mark E. Rubinstein, 1973. "Speculation and Information in Securities Markets," UCLA Economics Working Papers 032, UCLA Department of Economics.
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