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...

The paper constructs a theoretical framework in which the value of information in general equilibrium is determined by the interaction of two opposing mechanisms: first, more information about future random events leads to better individual decisions and, therefore, higher welfare. This is the...