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This article investigates the stability properties of markets with backward-bending supply curves. Parameters are chosen so that the two classic models of price dynamics, the Walrasian model and the Marshallian model, give opposite predictions. The results are (1) market instability can be observed, and (2) in the backward-bending case stability is captured by the Walrasian model and the Marshallian model of dynamics is rejected. Previous experiments have demonstrated that the Marshallian model works in the forward-falling case. Thus, which theory of dynamics is appropriate for a market depends on the underlying reasons for demand and supply shapes. (JEL C92, D5, D41, D44) [ABSTRACT FROM AUTHOR]

Circuit breaker, an automated regulatory instrument employed to deter panic, temper volatility, and prevent crashes, is controversial in financial markets. Proponents claim it provides a propitious time out when price levels are stressed and persuades traders to make rational trading decisions. Opponents demur its potency, dubbing it a barrier to laissez‐faire price discovery process. Since conceptualization in 1970s and practice from 1980s, researchers focused mostly on its ability to allay panic, interference in trading, volatility transmission, prospect of self‐fulfilling prophecy through gravitational pull towards itself, and delayed dissemination of information. Though financial economists are forked on circuit breakers' usefulness, they are a clear favourite among regulators, who downplay the reliability of anti‐circuit breaker findings citing, inter alia, suspect methodology, and lack of statistical power. In the backdrop of 2007–2008 Crisis and 2010 Flash Crash, the drumbeats for more regulatory intervention in markets grew louder. Hence, it is unlikely that intervening mechanism such as circuit breakers will ebb. But are circuit breakers worth it? This paper synthesizes three decades of theoretical and empirical works, underlines the limitations, issues, and methodological shortcomings undermining findings, attempts to explain regulatory rationale, and provides direction for future research in an increasingly complex market climate. [ABSTRACT FROM AUTHOR]

We built an artificial market model and investigated the impact of large erroneous orders on financial market price formations. Comparing the case of consented large erroneous orders in the short term with that of continuous small erroneous orders in the long term, if amounts of orders are the same, we found that the orders induced almost the same price fall range. We also analysed effects of price variation limits for erroneous orders and found that price variation limits that employ a limitation term shorter than the time erroneous orders exist effectively prevent large price fluctuations. We also investigated effects of up-tick rules, adopting the trigger method that the Japan Financial Services Agency adopted in November 2013. We also investigated whether dark pools that never provide any order books stabilize markets or not using the model including one lit market, which provides all order books to investors, and one dark pool. We found that markets become more stable as the dark pool is increasingly used. We also found that using the dark pool more reduces the market impacts. However, if other investors' usage rates of dark pools become too large, investors must use the dark pool more than other investors to avoid market impacts. When a tick size of a lit market is larger, dark pools are more useful to avoid market impacts. These results suggest that dark pools stabilize markets when the usage rate is under some threshold and negatively affect the market when the usage rate is over that threshold. Our simulation results suggest the threshold might be much larger than the usage rate in present real financial markets. This study is the first to discuss whether or not several concrete and actually adoptable regulations, including those that have never been employed (e.g. price variation limits with various parameters), could prevent large fluctuations of market prices, including those beyond our experience, using artificial market simulations, and to discuss quantitatively how spreading of dark pools beyond our experience could affect market price formations using the artificial market simulations. In short, this study is the first study to comprehensively discuss how regulations and financial systems beyond our experience could affect price formations using the artificial market simulations. Copyright © 2015 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Business Finance & Accounting is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We develop a coordination game to model interactions between fundamentals and liquidity during unstable periods in financial markets. We then propose a flexible econometric framework for estimation of the model and analysis of its quantitative implications. The specific empirical application is carry trades in the yen-dollar market, including the turmoil of 1998. We find a generally very deep market, with low information disparities among agents. We observe occasional episodes of market fragility or turmoil with up by the escalator, down by the elevator patterns in prices. The key role of strategic behavior in the econometric model is also confirmed. [ABSTRACT FROM AUTHOR]

An auctioneer model of market adjustment is proposed that, unlike the standard formulation, has prices react to extrapolated (rather than prevailing) excess demands. If expectations are sufficiently sensitive to current rates of change, every regular market equilibrium is shown to be locally stable. The model can be regarded as providing an institutional interpretation to Newtonlike methods of market adjustment that, as the Newton process itself, ensure stability of every regular zero of a vector field. [ABSTRACT FROM AUTHOR]

Geometric analysis of iterated cross–volatilities of asset prices is adopted to assess the stability of the (risk–free) measure under infinitesimal perturbations. Perturbations of asset prices evolve through time according to an ordinary linear differential equation (hedged transfer). The decay (feedback) rate is explicitly computed through a Fourier series method implemented on high frequency time series. [ABSTRACT FROM AUTHOR]

Comments on the issues raised by professor Joseph Stiglitz regarding the role of monetary policy during the financial crisis in Asia in 1997-1998. Concerns about the costs of allowing interest rates to rise during a financial crisis; Distinction between monetary policies and monetary conditions; Reason of the International Monetary Fund for pushing a high-interest-rate policy during the crisis.

Comments on the issues raised by professor Joseph Stiglitz regarding the role of monetary policy during the financial crisis in Asia in 1997-1998. Concerns about the costs of allowing interest rates to rise during a financial crisis; Distinction between monetary policies and monetary conditions; Reason of the International Monetary Fund for pushing a high-interest-rate policy during the crisis.

This paper constructs an institutional investor network based on the heavy holdings of the same stock in China and conducts a social network analysis to investigate the influence of this network on stock price volatility from the perspectives of network structure (density) and location (centrality). The study demonstrates that institutional investor network density is negatively related to stock price volatility, while network centrality is positively related to it. Mechanism analyses further reveal that network density reduces stock price volatility by mitigating private information arbitrage behavior among institutional investors, whereas network centrality increases stock price volatility by creating private information arbitrage opportunities within the network. Additionally, the paper finds that information asymmetry enhances the positive effect of network centrality on stock price volatility. These findings are generally consistent across subsample analyses for different market states, reactions to good and bad news, and types of equity ownership, as well as in other robustness tests. The practical implications of these findings are significant for market stability regulation. [ABSTRACT FROM AUTHOR]

The dynamic properties of a producer-government interaction model are investigated to show why the United Kingdom's policy of regulating its agricultural markets by annually adjusting guaranteed prices failed to control persistent fluctuations in supplies, market prices, and subsidy costs of beef and milk during the fifties and sixties. The evidence suggests that governments' responses to undesired movements, particularly in potential milk supplies, were excessive in terms of the magnitudes and frequency of official price adjustments. This emphasized the cyclical tendencies in the beef-milk economy, which was also susceptible to the destabilizing effects of random milk yield variation. [ABSTRACT FROM AUTHOR]

This article corroborates an article by E. Dobbins M. J. Greenwood concerning stability of institutional stockholders and equity market. The pattern of equity trading on the London Stock Exchange appears in Table 1. Combined financial institutions increased their contribution to total equity turnover to over 50 per cent in 1974 and 1975. Statistics appearing in Table 2 illustrate the increasing pace of institutional growth as far as ownership is concerned. Private pension funds made net disposals in only the final quarter of 1974. Public and local authority pension funds were net purchasers in all forty periods.

This paper studies the complexity analysis in production between competition and R&D for a traditional energy vehicles enterprise and a new energy vehicles enterprise under the introduction of corporate average fuel consumption credits and new energy vehicle credits mandate. From the internal perspective of market complexity evolution, this paper analyzes the internal mechanism of market competition fluctuation and discusses the influence of different corresponding speeds of enterprises on market stability through the nonlinear dynamics' theory. The research results show that the adjustment coefficient of R&D investment and the price coefficient of credit transactions are the key factors affecting the competitive strategies of the two companies. The difference between these two factors will even change the relative R&D investment intensity, relative profitability, and market stability of the two companies in a balanced state. In addition, the numerical analysis showed that the time-delay feedback control method could control the unstable behavior of the dynamic system efficiently and quickly and make the market quickly recover a stable and orderly state, which provided a scientific basis for decision makers to effectively solve the market instability. [ABSTRACT FROM AUTHOR]

While energy risk is increasingly recognized as a systemic risk, there is limited comprehensive analysis of the risk propagation in regional contexts. In this study, we examine oil and natural gas price changes and shocks in relation to equity market returns and volatility for 24 European Economic Area (EEA) countries. In addition to traditional panel regressions, we also deploy the Diebold‐Yilmaz (2014) spillover index for a closed network analysis. We differentiate in the cross‐section across the core EU block, PIIGS countries, EU enlargement countries joining after 2004, and other non‐EU countries, to provide insights into the ongoing debates on the European energy market stability. While we find evidence of the manifestation of energy risk throughout the sample period, we find that until 2019 the primary sources of volatility spillover in the EEA economic network arose from economic or political uncertainty. Energy risks, measured by large crude oil and natural gas price shocks also significantly contributed to equity market volatility, with increasing volatility risk arising from natural gas, a green labelled energy source after 2019. Last, we show that CEEC equity markets are more sensitive to oil and natural gas price shocks when domestic currencies depreciate against the Euro. [ABSTRACT FROM AUTHOR]

This paper presents the development of a model incorporating two manufacturers in a competitive carbon emissions trading market with varying degrees of market competitiveness. Among them, the manufacturer is in a limited market leadership position, and the game process lies between the Stackelberg game and the Cournot game. Additionally, the Pareto solution sets at various model periods are investigated. In addition, the model examined the effect of dynamic government adjustments on carbon emission limitations. The paper conducts an analysis of the fundamental factors contributing to system instability and evaluates the influence of various factors on the model's stability. At the same time, we also discussed the influence of government adjustment strategy on retail decision‐making and stability. The results highlight that the instability of the system is mainly caused by the adjustment strategy of the market leader, whereby the system becomes increasingly unstable as the market leader's position becomes stronger. In addition, the government's implementation of carbon emission limits will promote market stability. [ABSTRACT FROM AUTHOR]

This research delves into the formation of labor values in Latin America, exploring the complex interaction between socio‐demographic characteristics (gender, age, and educational level), well‐being (happiness, health, and life satisfaction), and macroeconomic factors (wealth, equity, and labor market stability). With microdata drawn from the World Values Survey, the study employs Logit and Blinder–Oaxaca decomposition models to analyze data from Brazil, Chile, Colombia, Mexico, and Peru during 2005–2019. It uncovers the significant influence of worker happiness on labor values, especially among self‐employed individuals, and highlights happiness as a critical factor in varying labor values related to different well‐being dimensions. These insights reveal the intricate determinants of work values in the region, providing valuable implications for talent management and policy development aimed at fostering sustainable development through positive labor values. [ABSTRACT FROM AUTHOR]

The synchronization in financial markets has increased during the rise of global markets. Nevertheless, global shocks provoke high levels of returns synchronization that jeopardize market stability. Using correlation-based networks, regressions, and VAR models, we measure and estimate the effect of global synchronization on the world equity markets of North America, Latin America, Europe, Asia, and Oceania between July 2001 and April 2020. We find that our measure of global stock synchronization is dynamic over time, its minimums coincide with significant financial shocks, and it shrinks to its minimum levels, indicating that the returns of global markets are moving in a synchronized way. Also, it is a significant and positive factor of regional synchronization. Regional markets react heterogeneously to global synchronization shocks suggesting both local and global factors are sources of synchronization. Our work helps market participants who need to measure, monitor, and manage the synchronization of returns in a parsimonious, dynamic, and empirically tractable way. Our evidence highlights the necessity of including synchronization as a risk factor to assess the decision-making criteria of a broad range of market participants ranging from regulators to investors. To policy-makers, governments, and central banks, our work is a call to incorporate events of high global synchronization into the radar of hazards of the whole market stability. [ABSTRACT FROM AUTHOR]

In 2021 and 2022, Beijing courts annulled three contracts for cryptocurrency mining, holding that they were contrary to the public interest. The judges based their decisions on Chinese law provisions concerning contractual validity and supported their arguments by citing various policy documents warning of the risks of cryptocurrency‐related activities to financial market stability and energy consumption. Although the provisions that the courts cited were recently reformed, the courts' line of reasoning and approach may set an example for future cases concerning carbon‐intensive activities. This note therefore considers these judgements in the broader context of climate change litigation, reflecting on the role of courts in implementing industrial and microeconomic policy in the interpretation of contract law. [ABSTRACT FROM AUTHOR]

The systemic stability of a stock market is one of the core issues in the financial field. The market can be regarded as a complex network whose nodes are stocks connected by edges that signify their correlation strength. Since the market is a strongly nonlinear system, it is difficult to measure the macroscopic stability and depict market fluctuations in time. In this article, we use a geometric measure derived from discrete Ricci curvature to capture the higher-order nonlinear architecture of financial networks. In order to confirm the effectiveness of our method, we use it to analyze the CSI 300 constituents of China's stock market from 2005 to 2020 and the systemic stability of the market is quantified through the network's Ricci-type curvatures. Furthermore, we use a hybrid model to analyze the curvature time series and predict the future trends of the market accurately. As far as we know, this is the first article to apply Ricci curvature to forecast the systemic stability of China's stock market, and our results show that Ricci curvature has good explanatory power for the market stability and can be a good indicator to judge the future risk and volatility of China's stock market. [ABSTRACT FROM AUTHOR]

The main objective of this article is to analyze and compare the impact of political uncertainty and financial crises on stock market volatility in 10 MENA countries over the period 2005–2018. To test our hypothesis, a variety of GARCH models are used. The results indicate that political events have more significant effect than financial crises on stock market volatility, as we detect an increase in market volatility during political elections and terrorist attacks. The comparative tests employed to identify the best GARCH model in capturing stock markets volatilities reveal that GARCH/EGARCH models perform the best in our study. EGARCH model is more suitable during unpredictable events while GARCH model work well during predictable events. Additionally, we found that the reaction of investors is not similar during the three events studied. In fact, terrorist attacks admit a more significant effect than political election periods. We observed that the reaction of the stock market during expected events is not instantaneous, whereas it is instantaneous during unexpected events. Overall, our findings are of great significance for investors and market regulators in understanding the role of major events on stock market stability, particularly in MENA region. [ABSTRACT FROM AUTHOR]

We evaluate asset returns and volatility connectedness using the time‐frequency connectedness model and machine learning approaches. Using 48 years of monthly indices of equity real estate investment trusts (EREITs), mortgage real estate investment trusts (MREITs), stocks, commodities, and bonds, we find that shocks to EREIT, and MREIT returns have a transitory impact on other assets. However, asset volatility connectedness among assets occurs at lower frequencies as markets slowly process pricing information. Therefore, shocks to EREIT and MREIT decay gradually and spill over to the other three assets for long periods. We also find that the intensity of the time‐frequency connectedness of returns and volatility varies with business cycles and significant domestic and global non‐recession events. We attribute the dominance of real estate investment trusts (REITs) in destabilising the financial system through long‐term volatility transmission to the heavy linkage of REITs to highly illiquid underlying direct real estate markets and high REITs leverage, making them more sensitive to real estate fundamentals, monetary shocks and macroeconomic risks than stocks and bonds. The result of the algorithm‐based GA2M machine learning model broadly supports the dominance of EREITs in the transmission of returns and volatility and shows that commodities have more explanatory power in the transmission of volatility than in returns. The empirical findings have implications for strategic and tactical asset allocation and policy design for market stability. [ABSTRACT FROM AUTHOR]

Freight transport is critical to the development of the global economy, but it also increases greenhouse gas (GHG) emissions. As a result, global challenges, such as climate change, must be addressed. Hydrogen‐fueled transportation could be a viable, sustainable alternative by providing a clean, efficient, and long‐term alternative to fossil fuels, resulting in significantly lower GHG emissions. However, the usage of hydrogen as a fuel is still in its nascent stage, and different nations have initiated strategizing its production and consumption. Understanding the factors that may affect hydrogen's adoption as a fuel in the transportation and logistics sector becomes crucial. The present study attempts to fill this gap by identifying, categorizing, and prioritizing those factors. Initially, the factors have been identified from the literature and further finalized with the consultation with domain experts using the critical success factor theory. Further, relevant factors have been finalized and categorized using exploratory factor analysis. Afterward, the grey–ordinal priority approach is applied to determine the priority weights of the categories and their factors. The findings indicated that operational and environmental are the two most prioritized categories. Specifically, "Substituting Energy Dependency," "Storage and Infrastructure Costs," and "Ability to Mitigate Harmful Gases" are the top three prioritized factors for the adoption of hydrogen‐fueled transportation among stakeholders. According to the findings, the management of related businesses can collaborate as a business strategy to develop a robust hydrogen supply chain and secure the market stability of hydrogen fuel to ensure sustainable freight transportation. [ABSTRACT FROM AUTHOR]

This paper uses agent-based modelling to study the frequent booms and busts in Chinese agricultural markets. First, an artificial agricultural commodity market consisting of heterogeneous agents, such as producers, consumers, and speculators, is built. A numerical simulation suggests that speculation can cause large price fluctuations via nonlinear price dynamics. Then, parameters are estimated by the simulated method of moments using garlic and ginger price data in China from 2006Q2 to 2018Q3. The estimation yields a statistically significant speculative behavior parameter, supporting speculators' existence. Based on the well-estimated model, a low-cost policy experiment aiming at market stabilization is carried out. The essence of this policy is to release the theoretical steady state of the estimated model as the government-guided price to producers. The guided price, even partially followed by producers, can reduce simulated price variances and weaken speculators' negative impact on market stability. Robustness tests show that the effect of policy experiment is robust under a 20% change in any parameter value or a 5% change in the guided price. [ABSTRACT FROM AUTHOR]

This study examines the strategies of 41 businesses which are market share leaders, but have poor performance. Hypotheses are tested relating to market stability and product demand characteristics, as well as organizational commitments and competitive strategies. [ABSTRACT FROM AUTHOR]

Ride‐sharing platforms, such as Uber and Didi Chuxing, widely use differential pricing strategies to encourage platform participation. However, it remains unclear whether differential pricing strategies in ride sharing are reasonable when users care about price fairness. Moreover, platforms face a unique dilemma when considering differential pricing: should it be used for customers, drivers, or both? On the demand side, platforms must deal with taxi competition, while the supply side contends with government regulation; it is this dilemma that motivates our work. Using a stylized model that includes price fairness, market conditions, and government policies, we consider four ride‐sharing platform pricing strategies: uniform pricing, differential customer pricing, differential driver pricing, and bilateral differential pricing. We present results from three perspectives. For platforms, we obtain feasible regions in all four pricing strategies. If the maximal number of potential drivers is below certain thresholds, a platform will use differential driver pricing. Conversely, differential customer pricing is optimal when the maximal number of potential drivers is sufficiently large. Moreover, when customers have stronger fairness concerns, platforms tend to use differential driver pricing to reduce competition. From the government perspective, when a platform charges customers differently, the government can achieve a win‐win solution for sustainable development and market stability by setting a proper taxi rate. Interestingly, we find that, for the demand and supply sides, an increase in fairness concerns may hurt customers and drivers under certain conditions. [ABSTRACT FROM AUTHOR]

The Bank of Papua New Guinea has maintained an active policy of foreign exchange (FX) market intervention. This monetary tool is associated with a depreciating currency and a worsening shortage of foreign currencies in the domestic market, suggesting that at most the policy instrument leans against existing FX‐market pressure. However, the one‐sided sales of central bank securities (or bills) engender an appreciation of the rate and an easing of the shortage in the domestic FX market. Supported by empirical evidence, we demonstrate that the one‐sided sales of central bank bills perform like an instrument of monetary policy for FX‐market stability in the presence of persistent nonremunerated excess bank reserves. [ABSTRACT FROM AUTHOR]

Presents an overview of the priorities, the scale of investment required and challenges involved in investing in the global oil industry. Oil market stability; Issue of demand security; Inherent dangers in becoming over-reliant on the basic concept of unregulated market forces.

Copyright of Politics & Policy is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Brands share more of their customers with bigger competitors and fewer with smaller ones. However, there are occasional deviations to this predictable Duplication of Purchase (DoP) pattern. When two or more brands share excess customers because of functional or nonfunctional differences—it is called a partition. While past research using the NBD‐Dirichlet model demonstrates partitions in annual or shorter data, there is no empirical evidence for partition persistency over the longer term, although some other NBD‐Dirichlet deviations are known to persist over time. Examining expected partitions in 10 consumer goods categories in the United Kingdom, the authors show partitions overwhelmingly persist over 3 years. The findings contribute support to Dirichlet theory, especially on market stability, boundary conditions, and provide practical implications for portfolio management. [ABSTRACT FROM AUTHOR]

There have been heated debates about the role of stock index futures in the financial market, especially during the crash periods. In this paper, a multiagent spot-futures market model is developed to analyze the micromechanism of shock transfer across spot and futures markets. We assume that there are two stocks and one stock index futures contract in the spot-futures market. Agents are heterogeneous, including fundamentalists, chartists, noise traders, and arbitragers. The spot market and the futures market are linked by arbitragers. The simulation results show that our spot-futures market model can reproduce various important stylized facts, including the price co-movement between stock index prices and index futures prices and the fat-tailed distribution of the returns of risky assets and the basis. Further analysis shows that when we introduce an exogenous fundamental shock to one of the stocks, the backwardation phenomenon appears in the futures market and the shock is widespread across the whole market by means of index futures. Moreover, the backwardation gradually disappears when the number of arbitragers increases. Besides, when there are few arbitragers or when there are sufficient arbitragers, shocks cannot be transferred to other stocks via the futures market, while an intermediate level of arbitrage will amplify the shock transfer and hurt market stability. These findings underscore that arbitragers play an important role in spot-futures market interaction and shock transfer, and adequate arbitrage trading during crises may help eliminate the positive basis and halt the further spread of the crises. [ABSTRACT FROM AUTHOR]

Data transparency is fundamental in the monitoring of markets and provides the bases of data‐driven decision‐making among market players. Energy markets and principally the oil market are by nature dependent on accurate, timely and high‐quality data, particularly during periods of downturn, or structural change. High‐quality and timely energy data also play a vital role in contributing to energy market stability. This paper captures only a small part of the richness in OPEC efforts towards promoting energy and, particularly, oil data transparency throughout the Organization's 60 year history. The Organization and its Member Countries are continuously manifesting their commitment towards a transparent oil market place by numerous freely available publications, such as the OPEC ASB, MOMR and the WOO, while at the same time strongly supporting JODI data collection and several other data‐related activities. The Organization and its Member Countries are pioneers in implementing new technologies, such as digitalisation and Big Data towards setting higher data quality standards. [ABSTRACT FROM AUTHOR]

Nordlund M. Who are the lucky ones? Heterogeneity in active labour market policy outcomes Int J Soc Welfare 2011: 20: 144-155 © 2010 The Author(s), International Journal of Social Welfare © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. This study focuses on how the effects from investments in Active Labour Market Policy programmes (ALMPs) may be differently distributed due to the age and educational level of participants. Outcomes were measured as the chance of labour market inclusion, labour market stability and post-unemployment incomes. This longitudinal study captures long-term effects among 50,000 Swedes who entered unemployment in 1993. While the youngest gained most from ALMP-training, the oldest were best helped by ALMP- employment in reducing the risk of labour market exit. The lowest educated gained much from ALMP participation, although the effects were weaker than expected: those with a higher education gained more in terms of labour market stability from ALMP-training compared with the less educated persons. This result was interpreted in terms of a springboard effect, meaning that ALMP-training pushes higher educated people into further education in the regular educational arena. [ABSTRACT FROM AUTHOR]

Some strategy scholars and practitioners contend that markets have become increasingly hypercompetitive in recent years. We examine this contention by analyzing industry and business performance patterns in a broad sample of firms drawn from the Compustat Industry Segment database for the 1978-97 period. We find little support for the argument that markets have become more hypercompetitive. From the late 1970s to the late-1980s we observe decreased performance and market stability, consistent with increasing hypercompetition contentions. From the late 1980s to the mid-1990s, however, trends reverse and performance and market stability increase. For strategy research, our results suggest that hypercompetitive perspectives are important but no more so now than they were in recent years. For practice, our results suggest that managers today face markets no more dynamic and opportunities to gain and sustain competitive advantage no more challenging than in the past. Accordingly, they should continue developing a portfolio of skills to manage businesses whether conditions are increasingly stable or unstable. [ABSTRACT FROM AUTHOR]

The adaptive neuro‐fuzzy inference system (ANFIS) is widely employed in modeling intricate systems, especially in forecasting cooking oil prices. However, ANFIS confronts limitations stemming from backpropagation, prompting the exploration of alternatives like particle swarm optimization (PSO). Hybrid PSO‐ANFIS models exhibit enhanced forecasting accuracy, albeit at the expense of increased computational time. Nonetheless, both ANFIS and hybrid PSO‐ANFIS encounter challenges in handling dynamic relationships influenced by macroeconomic factors. To address these issues, the development of the State‐ANFIS (S‐ANFIS) method integrates regime‐switching models, enhancing its capability to manage dynamic relationships. Particularly effective in cooking oil price prediction, S‐ANFIS clarifies the impact of external variables and improves forecast accuracy and interpretability by combining ANFIS with state‐space models. Our analysis underscores S‐ANFIS's superiority over ANFIS, particularly with Gaussian membership functions, as it reduces RMSE and MAPE values by half while requiring fewer nodes, thereby improving computational efficiency. Additionally, integrating key state variables like crude palm oil (CPO) prices, inflation rates, and the USD exchange rate enhances the reliability of the model. Overall, S‐ANFIS offers a more accurate, interpretable, and efficient approach to forecasting cooking oil prices, demonstrating superior predictive capabilities. [ABSTRACT FROM AUTHOR]

The prevalence of B2B platform ecosystem has led to the emergence of revenue‐sharing contracts as the dominant business model adopted by manufacturers and retailers on these platforms. This paper establishes a dynamic game model of B2B platform ecosystem, comprising one manufacturer and one retailer, where the manufacturer engages in technological investments and the retailer engages in consumption investments, both exhibiting bounded rationality. Through a comprehensive analysis of complex behaviors, the results reveal the following: (1) Adjustment speed of the manufacturer influences the stability of the platform ecosystem, with higher adjustment speeds leading to greater instability. In a stable state of the B2B platform ecosystem, an actor with lower costs tends to make higher investments. (2) Higher investment costs contribute to a more stable B2B platform ecosystem. When the ecosystem stabilizes, increasing investment costs will reduce manufacturers' investment levels. (3) The retailer revenue sharing parameter exacerbates the instability of the B2B platform ecosystem. This unequal distribution not only impairs manufacturers' earnings but also disrupts B2B platform ecosystem equilibrium. (4) Market expansion results in B2B platform ecosystem imbalance. As the market size increases, investment levels rise, but this also leads to system instability. Therefore, managers must strike a balance between market expansion and system stability objectives. (5) We incorporate the time‐delayed feedback control (TDFC) method to regulate intricate phenomena. The TDFC method proves effective in mitigating chaotic behaviors within B2B platform ecosystem. [ABSTRACT FROM AUTHOR]

This article assesses the hedging and safe haven properties of energy and agricultural commodities (crude oil, natural gas, and wheat) against the G7 stock market indices and banking sector stock indices during the COVID‐19 pandemic, the Russia–Ukraine military conflict, and the Silicon Valley Bank (SVB) collapse. Using wavelet coherence analysis, our results showed dynamic correlations in which commodities shifted from diversifiers to strong safe havens during periods of turmoil. Particularly, WTI became a safe haven during the SVB collapse, natural gas acted primarily as a safe haven during the pandemic, and wheat evolved into a robust safe haven during crises. Moreover, our results with the G7 banking sector stock indices underscore the safe haven ability of commodities against these financial assets, furnishing valuable insights for investors during unstable financial situations. [ABSTRACT FROM AUTHOR]

With the increasing penetration rate of renewable energy in the power system, it becomes increasingly important to coordinate adequacy, flexibility, and environmental protection. The development of the power market provides diverse signals for power investors and plays an increasingly significant role in the decarbonization of the power system. However, due to the interdependent operations of various power markets, measuring the multifaceted value of power generation within traditional market mechanisms poses considerable challenges. Herein, a bi‐level optimization model is proposed to integrate the capacity remuneration mechanism (CRM), energy market (EM), and carbon emission trading (CET). The adequacy, flexibility, and environmental revenue expectations of different generation resources through synergistic transactions are derived using Lagrange multipliers. Furthermore, the bilevel optimization model is converted to its equivalent single‐level scheme based on the Karush–Kuhn–Tucker optimality conditions. Finally, several case studies are conducted to demonstrate the effectiveness of the proposed model, along with comparisons and sensitivity analyses to study the principles behind synergistic transactions and the impact of some key parameters. [ABSTRACT FROM AUTHOR]

Geopolitical risk (GPR) presents a profound challenge to firms, particularly in regions with persistent political instability. In Eastern Europe, where conflicts like the Russia–Ukraine war heighten uncertainty, firms face immediate financial threats and long‐term strategic vulnerabilities. This study examines the impact of GPR on firm performance, focusing on the moderating role of environmental, social, and governance (ESG) practices as a resilience mechanism. Using a comprehensive dataset of 1360 publicly listed firms across Poland, Russia, and Ukraine from 2014 to 2023, the analysis employs a base panel data regression model, followed by a two‐step generalized method of moments (GMM) approach to account for endogeneity and ensure robustness. The findings reveal a significant negative relationship between GPR and firm performance, measured by return on assets (ROA). Firms exposed to higher geopolitical risks exhibit weaker profitability. However, firms with stronger ESG performance demonstrate greater resilience, as the GMM results show that ESG engagement moderates the adverse effects of GPR on profitability. This suggests that ESG initiatives enhance adaptive capacity in volatile geopolitical environments. In terms of policy implications, ESG should be promoted as a key strategy for firms operating in politically unstable regions. Governments and regulatory bodies may consider mandatory ESG disclosures and incentivizing sustainability practices to help firms mitigate external risks, improve financial resilience, and attract stable investment. Aligning corporate strategies with global ESG standards is essential to ensuring business sustainability amid ongoing geopolitical threats. [ABSTRACT FROM AUTHOR]

The study of consumption behavior on green food plays an important role in promoting agricultural environmental protection and eco‐agricultural production. Based on the practical investigation, this paper makes an empirical study on the consumption behavior of green food by using binary logistic regression model. It is found that consumer's education level has a significant positive effect on green food consumption. Consumer income level does not pass the test on consumption behavior, but the change direction is opposite. Consumer age and premium of green food are negatively correlated with consumption motivation and behavior, while green food reliability and satisfaction are positively correlated with consumption motivation and behavior. Consumer gender, marital status, and information channels have no significant impact on consumption motivation and behavior. According to the research results, the production and marketing of green food should pay attention to the product quality and the actual feedback from consumers, and should increase the market propaganda to improve the attention and recognition ability on green food, and should take effective measures to develop the older consumer's market. [ABSTRACT FROM AUTHOR]

At present, the problems of homogenization and low quality in China's iron and steel industry are particularly prominent and the ability of the enterprises to cope with change is insufficient. Adopting product differentiation strategy and dynamic adjustment strategy can allow steel enterprises and the industry to better adapt to future changes. By introducing the product differentiation degree (substitution coefficient) and the bounded rationality strategy to simulate these two strategic means, this paper constructs an extended two-stage dynamic game model to analyse the dynamic game scenarios and steel market stability in China. As new findings, we report the following: (1) The system is more likely to fall into an unbalanced state when multiple enterprises adopt the policy of dynamic output adjustment simultaneously. (2) Enterprises with large output and small output have different output adjustment policies. When enterprises with big-scale output adopt a bit larger adjustment policies, enterprises with small output will be strongly impacted, and the available adjustment space will be sharply compressed. (3) The gradual increase in the difference between products reduces the stability of the market. (4) When product differentiation and bounded rationality strategies coexist, the steel market may fall into an unbalanced state when the degree of product difference increases excessively and the enterprise adopts more drastic output adjustment policies. Therefore, there are pros and cons to product differentiation strategy and bounded rationality adjustment strategy. When each steel oligopoly enterprise formulates a production plan, it needs to comprehensively consider the output changes of the other enterprises and carefully weigh the strategic issues. [ABSTRACT FROM AUTHOR]

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In the 2007–08 financial crisis, over‐the‐counter (OTC) derivatives triggered the collapse of colossal financial institutions. In response, global policy makers instituted clearinghouse mandates. As a result, all standardized OTC derivatives must now use clearinghouses, and global financial market stability now depends upon these institutions. Yet certain underlying legal and regulatory structures threaten to undermine clearinghouse stability, particularly were a significant clearinghouse to become distressed. This article argues that the clearinghouse mandates are incomplete in that they fail to reform these problematic arrangements. As with electric utilities, the lights at the financial market infrastructures known as clearinghouses must always be on. Yet the legal frameworks for handling a distressed clearinghouse, the problem of clearinghouse recovery, and resolution, remain uncertain. This article advances debate on this issue. It argues that recovery, a private market restructuring process, can be conceptualized as a bargaining game dependent upon time‐critical cooperation between a clearinghouse and members. This article uses transaction cost economics to demonstrate, however, that certain underlying legal and regulatory structures could work at cross‐purposes to this necessary cooperation, and actually increase its cost. Based upon this analysis, it proposes reforms designed to ensure that parties' incentives promote efficient recovery. In the absence of efficient recovery frameworks, the path of a distressed, significant clearinghouse is likely to resemble that of the government‐backed mortgage lenders whose fate more than ten years after their entry into conservatorship remains uncertain. This article aims to help avoid a repeat of this history. [ABSTRACT FROM AUTHOR]

This study attempts to evaluate the efficacy of macroeconomic policies in resolving financial market disequilibria and to elucidate the influence of the political landscape and global financial integration on the policymaking process. The current investigation examines three macroeconomic policies: (a) government spending, (b) liquidity provision, and (c) central bank interest rates by analysing 21 countries around the globe. The results suggest that government spending is a suboptimal macroeconomic policy for mitigating imbalances in financial markets, as it may have destabilizing effects. Liquidity provision was found to be ineffective in facilitating financial market stability whereas the adjustment of interest rates was found to be a viable tool for mitigating financial market imbalances. Therefore, an appropriate policy framework would comprise the following: prudent government spending, conditional liquidity provision, and a reduction in interest rates following the development of financial market disequilibria. Furthermore, this study found strong evidence against the notion that political orientations influence policy frameworks, which were designed to redress financial market disequilibria. This study also found that global financial integration does not influence the policymaking process. [ABSTRACT FROM AUTHOR]

We survey more than 1,100 risk managers from around the world regarding their risk management policies. We find evidence consistent with some traditional theories of risk management, but not with all. We then study "why" or "why not" firms hedge and find that almost 90% of risk managers in nonfinancial firms hedge to increase expected cash flow. We also find that 70% to 80% of risk managers hedge to smooth earnings or to satisfy shareholders' expectations. Our analysis also suggests that regulatory changes implemented to increase market stability (e.g., Dodd‐Frank Act) could discourage corporate hedging. Finally, we provide evidence regarding hedging in six areas of risk: interest rate, foreign exchange, commodity, energy, credit, and geopolitical. We find that operational hedging is more common than financial hedging in all risk areas except foreign exchange. [ABSTRACT FROM AUTHOR]

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