Arbeitspapier
Bargaining in international trade under exchange rate uncertainty
This paper studies the implications of various contracting alternatives between exporting and importing firms on the value of production and international transactions. Since contracts are usually determined when exchange rate is uncertain, we show that under some conditions renegotiating these initial trade contracts can be beneficial to both parties. In such Nash-type bargaining solutions the initial contract is the disagreement point. It is shown that when renegotiation is possible, the firm produces more and the expected export is higher. Our results have some implications to well-known results concerning vertical integration as well.
- Language
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Englisch
- Bibliographic citation
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Series: Diskussionsbeiträge - Serie II ; No. 215
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Donnenfeld, Shabtai
Zilcha, Itzhak
- Event
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Veröffentlichung
- (who)
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Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
- (where)
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Konstanz
- (when)
-
1994
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Donnenfeld, Shabtai
- Zilcha, Itzhak
- Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
Time of origin
- 1994
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