Download
Commodity Hubs are usually small areas, where the delivery of a trading standard has to take place. An example is the WTI crude oil contract (to be delivered in Cushing/Oklahoma).
But the concept can be generalized to wide spatial areas, if the ratio of transport costs to varioius areas from the source of the commodity is stable. It requires then, that the trading standard contract defines
these ratios and that the price of the commoditiy depends where it is finally delivered.
The following software allows to keep track of all possible delivery sites (database) and display them anonymized in circles on a published map.
Each circle displays the deviations from typical average transport costs F.
It is then possible to construct a "securization" (known from finance) of contracts of physical delivery and to create a Market Place, where one and the same contract is traded.
The basis is 'Hotellings law', stating that it is often preferable for producers to make products similar.
Project Samples
