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Export, Exchange Rate Risk and Hedging: The Duopoly Case

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Veröffentlicht/Copyright: 30. November 2019
German Economic Review
Aus der Zeitschrift German Economic Review Band 12 Heft 4

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.

Keywords: Exchange rate risk; hedging; exports; duopoly
Published Online: 2019-11-30
Published in Print: 2011-12-01

© 2019 by Walter de Gruyter Berlin/Boston

Artikel in diesem Heft

  1. Why Young Boys Stumble: Early Tracking, Age and Gender Bias in the German School System
  2. Buying Online: An Analysis of Shopbot Visitors
  3. When a Precedent of Donation Favors Defection in the Prisoner’s Dilemma
  4. Quality and Welfare in a Mixed Duopoly with Regulated Prices: The Case of a Public and a Private Hospital
  5. Optimal Investment and Financial Strategies under Tax-Rate Uncertainty
  6. Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer–Employee Data
  7. Export, Exchange Rate Risk and Hedging: The Duopoly Case
  8. Acknowledgements
  9. Index: Volume 12, 2011
https://doi.org/10.1111/j.1468-0475.2011.00531.x
Schlagwörter für diesen Artikel
Exchange rate risk; hedging; exports; duopoly

Artikel in diesem Heft

  1. Why Young Boys Stumble: Early Tracking, Age and Gender Bias in the German School System
  2. Buying Online: An Analysis of Shopbot Visitors
  3. When a Precedent of Donation Favors Defection in the Prisoner’s Dilemma
  4. Quality and Welfare in a Mixed Duopoly with Regulated Prices: The Case of a Public and a Private Hospital
  5. Optimal Investment and Financial Strategies under Tax-Rate Uncertainty
  6. Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer–Employee Data
  7. Export, Exchange Rate Risk and Hedging: The Duopoly Case
  8. Acknowledgements
  9. Index: Volume 12, 2011
Heruntergeladen am 15.5.2026 von https://www.degruyterbrill.com/document/doi/10.1111/j.1468-0475.2011.00531.x/html?lang=de
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