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dc.contributor.authorBénassy-Quéré, Agnèsen_US
dc.contributor.authorFontagné, Lionelen_US
dc.contributor.authorRaff, Horsten_US
dc.date.accessioned2009-03-11en_US
dc.date.accessioned2009-04-09T07:48:36Z-
dc.date.available2009-04-09T07:48:36Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/24884-
dc.description.abstractWe examine the effect of exchange-rate misalignments on competition in the market for large commercial aircraft. This market is a duopoly where players compete in dollar-denominated prices while one of them, Airbus, incurs costs mostly in euros. We construct and calibrate a simulation model to investigate how companies adjust their prices to deal with the effects of a temporary misalignment, and how this affects profit margins and volumes. We also explore the effects on the long-run dynamics of competition. We conclude that due to the duopolistic nature of the aircraft market, Airbus will pass only a small part of the exchange-rate fluctuations on to customers through higher prices. Moreover, due to features specific to the aircraft industry, such as customer switching costs and learning-by-doing, even a temporary departure of the exchange rate from its long-run equilibrium level may have permanent effects on the industry.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesKiel working paper 1488en_US
dc.subject.jelF31en_US
dc.subject.jelL13en_US
dc.subject.ddc330en_US
dc.subject.keywordExchange ratesen_US
dc.subject.keywordpass-throughen_US
dc.subject.keywordoligopolyen_US
dc.subject.stwLuftfahrtindustrieen_US
dc.subject.stwDuopolen_US
dc.subject.stwExchange Rate Pass-Throughen_US
dc.subject.stwInternationaler Wettbewerben_US
dc.subject.stwTheorieen_US
dc.subject.stwEU-Staatenen_US
dc.subject.stwUSAen_US
dc.titleExchange-rate misalignments in duopoly : the case of Airbus and Boeingen_US
dc.typeWorking Paperen_US
dc.identifier.ppn593508416en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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