This paper explores the merits of hedging stochastic input costs (i.e., reducing the risk of adverse changes in costs … chain members cannot profitably make its product. To the extend that hedging can ensure continuation in supply, hedging can … conditions there are equilibria in which neither firm hedges. To sustain hedging in equilibrium, both firms must hedge and supply …

We study hedging cash flow risks in a supply chain where firms invest internal funds to improve production efficiencies …. We offer a decomposition framework to capture the cost reduction and flexibility effect of hedging. It allows us to … understand how a firm's hedging choice depends on its supply chain partner's decision, and how such interaction is affected by …

We study the interplay between firms’ information sharing behaviors and cash hedging strategies in supply chains. First …, we argue that if an information-sharing channel is built up to guide supplier’s cash hedging strategies, then voluntary … market information sharing from retailer to supplier may take place when information rent on cost reduction effect of hedging …