An Experimental Approach to Testing the Competitive Storage Model

Simone Pfuderer

No 204297, 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK from Agricultural Economics Society

Abstract: A new approach to testing the competitive storage model is introduced. A relatively simple model is taken to the experimental laboratory. Market outcomes in the experiment deviate from the predictions of the competitive storage model in a number of ways. Average storage and the variability of storage are below the levels predicted by the competitive storage model. The resulting price series, therefore, tend to be more variable than would be the case if stockholders behaved according to the competitive storage model. In addition, the predicted relationship between availability and storage is non-linear but is linear in the experiment.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 23
Date: 2015-04
New Economics Papers: this item is included in nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc15:204297

DOI: 10.22004/ag.econ.204297

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