Transmission of Risk in a Supply Chain

Abstract

We develop an equilibrium model of price dynamics and the transmission of shocks in a supply chain. Starting with exogenous factors for the net supply of the upstream input and the demand for the downstream output, we determine the equilibrium price process for the input, the output, and the spread between input and output prices. We specify and calibrate… (More)

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Cite this paper

@inproceedings{Ghoddusi2012TransmissionOR, title={Transmission of Risk in a Supply Chain}, author={Hamed Ghoddusi and Sheridan Titman and Stathis Tompaidis}, year={2012} }