A Study on the Identifiers of Excess Demand in Iran’s Petrochemicals Exchange

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Zandi Goharrizi, Masoud | 2017

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 52658 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Rahmati, Mohammad Hossein; Vesal, Mohammad
Abstract:
Iran's petrochemicals exchange has experienced regular excess demand occurrence in recent years which has resulted in most transactions being done at ceil price specified by Iran's mercantile exchange. This study shows that the mechanism determined by Iran's mercantile exchange for doing transactions has given people the incentive to state their initial demand higher than their real demand in order to be able to gain their real demand in market. In order to do this, I have used data related to all transactions done in Iran's petrochemical exchange during March 2013 and March 2016 in a panel logit model and show that monopolistic power used by suppliers and the probability of excess demand occurrence have been the two most determinants of excess demand happening during this period. Finally, I have tried to measure the share of each factor effect on the excess demand
Keywords:
Excess Demand ; Price Ceiling ; Panel Logit Model ; Iran's Petrochemicals Exchange

No TOC