Export, Exchange Rate Risk and Hedging: The Duopoly Case

Удо Бролл · Jack E. Wahl · Christoph Wessel

14 citations0/0 files storedGerman Economic Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Risk Management in Financial Firms Global trade and economics Merger and Competition Analysis

Abstract

Abstract This paper studies a Cournot duopoly in international trade with firms exposed to exchange rate risk. A hedging opportunity is introduced by a forward market on which one firm can trade the foreign currency.We investigate two settings: First, we assume that hedging and output decisions are taken simultaneously. It is shown that hedging is exclusively done for risk-managing reasons as it is not possible to use hedging strategically. Second, the hedging decision is made before the output decisions. We show that hedging is not only used to manage the risk exposure but also as a strategic device.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 14 citations exist upstream.

References

1988The Theory of Industrial Organization 1989Theory of Industrial Organization.1993Risk Management: Coordinating Corporate Investment and Financing Policies 1985Multimarket Oligopoly: Strategic Substitutes and Complements 1985Export subsidies and international market share rivalry 1995The handbook of international economics 1999Oligopoly Pricing: Old Ideas and New Tools 1993Risk Management: Coordinating Corporate Investment and Financing Policies

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.