This paper represents one of the first analyses of exchange rate pass-through in a dynamic context. It explores the impact of exchange rate fluctuations in a duopoly where firms interact over an indefinite period of time. In these circumstances there exists an incentive for the duopolists to tacitly collude. The paper investigates the manner in which exchange rate changes influence the inherent...

This paper investigates the impact of hedging activities on U.S. export pricing. A theoretical framework of export pricing model with a hedging component was derived to test the hypothesis via exchange rate pass-through. The hypothesis is that a firm with a high (low) hedging engagement would have a low (normal) degree of exchange rate pass-through, ceteris paribus. Two measurements of the hedg...