Value of information

If people won’t pay what you want for your product, you don’t sell it, right?  Even in a boom year?

What are you going to do?  For some, the answer is “hold.”  Can they do that?

“Farmers Hoard Corn as Prices Drop,” Wall Street Journal, December 10, 2013 C1 http://on.wsj.com/18kA6hy

Is this a problem with too much transparency on prices, and the futures market? Or just gambling that corn can’t be supplied by others? Is there a cycle as the news of farmers storing and not selling hits the market?

If you need corn for your business, this is “bad,” especially if you don’t have contracts for supply.  If you sell storage space, this is “good.”  What if you’re selling futures contracts next year?

Which is affecting which, information or prices?  Is imperfect information the essence of business?

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