The paper presents a formal study of how risk aversion can be applied to analysis of international trade. It seeks to illustrate, amongst other things, that risk-averse firms operating in perfectly competitive markets with uncertainty of demand tend to diversify markets and that this provides...

The paper is concerned with the impact of market research prior to integration, on the structures of noncompetitive industries in integrated economy. The analysis focuses on separated, single commodity, monopolistic markets with stochastic demand. Monopolistic firms are considered in dynamic...

The analysis presented in this paper shows that in countries with relatively high wages risk-averse fi rms operating in perfectly competitive markets will reduce production of commodities with high uncertainty of demand. Such commodities will be produced mainly in countries having suffi ciently...

The paper provides an explanation of the mechanisms underlying trade <p> roots of the contagion effects emanating from the recent turmoils. It is argued <p> that under demand uncertainty risk averse behavior of firms provides a basis <p> for international trade. The paper shows by means of a simple...</p></p></p>

The paper is concerned with the impact of market research prior to integration with European Union (EU) on the structures of noncompetitive industries in integrated economy. The analysis focuses on monopolistic markets with stochastic demand. Firms are considered in dynamic multiperiod model,...

This paper develops a theoretical framework for the analysis of transformation of the service sector during privatization process. A simple model which includes a supplier of services and retail firms is presented and applied to study the effects of various sequences of privatization. Our...