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| Author: | Friberg, R. |
| Title: | In which currency should exporters set their prices? |
| Journal: | Journal of International Economics
1998 : JUN, VOL. 45:1, p. 59-76 |
| Index terms: | CURRENCY EXPORTING PRICES |
| Language: | eng |
| Abstract: | This paper studies the choice of price setting currency for an exporter faced with the choice of setting price in his own, in the importers' or a third currency under exchange rate uncertainty. The author establishes that sufficient conditions on demand and cost functions for exchange rate pass-through to be less than unity under certainty are also sufficient conditions for price setting in the importer's currency to yield the highest expected profit under exchange rate uncertainty. |
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