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Record W3125324244 · doi:10.26509/frbc-wp-200119

A Strategic Approach to Hedging and Contracting

2001· preprint· en· W3125324244 on OpenAlexaff
David Leonard Downie, Ed Nosal

Bibliographic record

VenueWorking paper · 2001
Typepreprint
Languageen
FieldBusiness, Management and Accounting
TopicSupply Chain and Inventory Management
Canadian institutionsRoyal Bank of Canada
Fundersnot available
KeywordsHedgeProfitability indexBusinessCash flowProduct (mathematics)Market powerCashMicroeconomicsSet (abstract data type)EconomicsFinancial economicsFinance

Abstract

fetched live from OpenAlex

This paper provides a new rationale for hedging that is based, in part, on noncompetitive behavior in product markets. We identify a set of conditions which imply that a firm may want to hedge. Empirically, these conditions are not inconsistent with what is observed in the market place. The conditions are: (i) firms have some market power in their product market, (ii) firms have limited liability, and (iii) firms can contract to sell their output at a specified price before all factors which can affect their profitability are known. For some parameter specifications, however, our model predicts that firms will not want to hedge. This result is important because although a large fraction of firms do hedge their cash flows, a substantial number of firms do not.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.003
metaresearch head score (Gemma)0.005
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.007
Threshold uncertainty score0.022

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0030.005
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.001
Science and technology studies0.0010.007
Scholarly communication0.0030.005
Open science0.0010.002
Research integrity0.0030.003
Insufficient payload (model declined to judge)0.0070.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.065
GPT teacher head0.241
Teacher spread0.176 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2001
Admission routes1
Has abstractyes

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