Staggered pricing boosts commodity price persistence, shaping global market dynamics.
The study introduces a new pricing method to a model of speculative storage for commodities. By including staggered prices, the model better reflects real-world price behaviors. This change makes prices stickier, leading to more persistence in commodity prices over time. The researchers tested their model using actual data on agricultural commodities and found that staggered prices can indeed affect the properties of commodity prices.