TY - JOUR
T1 - Bargaining In International Trade Under Exchange‐Rate Uncertainty
AU - Donnenfeld, Shabtai
AU - Zilcha, Itzhak
PY - 1995/10
Y1 - 1995/10
N2 - This paper examines the implications of various contracting alternatives between exporting and importing firms on the volume of international transactions. the contracts that we study are determined in a bargaining situation under exchange‐rate uncertainty. First we look at contracts which entail an ex ante commitment on price and quantity of exports without the possibility of renegotiation ex post. Second, spot contracts, i.e., the price and the quantity of exports are negotiated after the exchange the rate is known. A third type of contracts consists of ex ante commitment and ex post renegotiation.
AB - This paper examines the implications of various contracting alternatives between exporting and importing firms on the volume of international transactions. the contracts that we study are determined in a bargaining situation under exchange‐rate uncertainty. First we look at contracts which entail an ex ante commitment on price and quantity of exports without the possibility of renegotiation ex post. Second, spot contracts, i.e., the price and the quantity of exports are negotiated after the exchange the rate is known. A third type of contracts consists of ex ante commitment and ex post renegotiation.
UR - http://www.scopus.com/inward/record.url?scp=84982740588&partnerID=8YFLogxK
U2 - 10.1111/j.1467-9396.1995.tb00069.x
DO - 10.1111/j.1467-9396.1995.tb00069.x
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AN - SCOPUS:84982740588
SN - 0965-7576
VL - 3
SP - 249
EP - 263
JO - Review of International Economics
JF - Review of International Economics
IS - 3
ER -