期刊论文

英文

ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH

0424-267X

2021

55

2

247-264

10.24818/18423264/55.2.21.15

Raising initial capital for High level Talents of Central China Normal University [30101190001]; Fundamental Research Funds for the Central Universities, ChinaFundamental Research Funds for the Central Universities [CCNU19TD006, CCNU 19TS062]; Humanities and Social Science Planning Fund from Ministry of Education, China [16YJAZH078]

本校为第一机构

This paper analyzes the optimal production and pricing decisions in a novel contract mechanism consisting of an insurance company, a farmer and a futures company. We call the novel farming contract mechanism as "insurance + futures" mechanism (IFM). The key feature of IFM is to fully guarantee the farmer’s profits, motivate the insurance company to participate in the mechanism and control the risk of VaR (Value-at-Risk) faced by the futures company. We study the optimal production quantity for the farmer, the optimal premium rate for the insur...