Broll, Udo; Welzel, Peter; Kit, Pong Wong - 2014
This paper examines the behavior of the regret-averse multinational firm under exchange rate uncertainty. The … realization of the random spot exchange rate. We show that the conventional results that the multinational firm optimally produces … firm is not too regret averse. Using a simple binary model wherein the random spot exchange rate can take on either a low …