The long-run and short-run impact of captive supplies on the spot market price: an agent-based artificial market.

摘要

This article develops an agent-based model that matches the results of Xia and Sexton as well as the generalization of their model. The assumption of no supply response by captive feeders is relaxed thereby reducing the price-depressing effect of captive supplies. Finally, the agent-based model is used to simulate packers choosing both captive supply quantities and spot market quantities. Packers in the relaxed agent-based model choose no captive supplies and thus reach the Cournot solution. The research narrows the gap between theoretical models and the empirical work on captive supplies that shows little effect on prices, but a gap remains.