TY - JOUR
T1 - ESTIMATING THE VALUE OF CONTRACTS - A SIMULATION STUDY.
AU - Tapiero, Charles S.
AU - de Loze, Philippe
PY - 1974
Y1 - 1974
N2 - Contracts are binding bilateral agreements by which agreed-on exchange terms between two firms are used as substitutes for current market mechanisms as a medium of economic exchange. A model describing the probabilistic evolution of prices and demands, contract clauses and the value of contracts is simulated. As an example, five contract terms are considered and the simulated probability distributions for the value of each of these contracts is given. They are then compared in terms of their expected returns, variance and stochastic dominance.
AB - Contracts are binding bilateral agreements by which agreed-on exchange terms between two firms are used as substitutes for current market mechanisms as a medium of economic exchange. A model describing the probabilistic evolution of prices and demands, contract clauses and the value of contracts is simulated. As an example, five contract terms are considered and the simulated probability distributions for the value of each of these contracts is given. They are then compared in terms of their expected returns, variance and stochastic dominance.
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U2 - 10.1051/ro/197408V300331
DO - 10.1051/ro/197408V300331
M3 - Article
AN - SCOPUS:0016133011
VL - 8
SP - 33
EP - 49
JO - Rev Fr Autom Inf Rech Oper
JF - Rev Fr Autom Inf Rech Oper
ER -