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Sponsored Artificial Intelligence: A Modern Approach, Global Edition Artificial Intelligence: A Modern Approach, Global Edition

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Hartmut Egger

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Case report Open access Sep 2026

Hedging Trade-Cost Uncertainty

This paper studies how international firms hedge against trade-cost uncertainty. We analyze two margins of adjustment: foreign market entry (exporting versus foreign investment) and invoicing in free-on-board (FOB) or cost-insurance-freight-inclusive (CIF) prices. Under oligopolistic competition and price rigidity, tra...

Hartmut Egger, Peter Egger, Katharina Erhardt et al. · 0 citations

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