empirical strategy to test whether oligopolistic frms use forward contracts for strategic motives, for risk-hedging, or for both …. An increase in the number of players weakens the incentives to sell forward for risk-hedging reasons.However, if …Building on a model of the interaction of risk-averse frms that compete in forward and spot markets, we develop an …

Dominance and further toDecreasing Absolute and Increasing Relative Risk Aversion Stochastic Dominance. The efficient sets …

Consider a simple two-state risk with equal probabilities for the two states. In particular, assume that the random … way, we can extend and generalize existing results about risk attitudes. This lottery preference includes behavior … exhibiting higher order risk effects, such as precautionary effects and tempering effects. …

Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment … (FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool … of risk mitigation. We show that country risk assessments related to foreign direct investment do not matter if the …

Many firms face product price risk in foreign currency, uncertain costs in home currency and exchange rate risk. If … prices and exchange rates in different countries interact, natural hedges of foreign exchange risk might result. If the … important implications for the design of risk management strategies. …

. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of …Based upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation … of an international enterprise open currency position does not inevitably require a corresponding hedging accommodation …

The paper presents a model of a risk-averse exporting firm under exchange rate risk. We focus on the economic … implications of basis risk. It is shown that the regression dependence assumptions between spot and futures exchange rates are … essential in analyzing optimal hedging and export decisions. When the spot exchange rate and the futures exchange rate are …

risk aversion aspects of enterprises, it is demonstrated that situations characterized by enhanced exchange rate volatility …