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https://hdl.handle.net/10419/24884
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Bénassy-Quéré, Agnès | en |
dc.contributor.author | Fontagné, Lionel | en |
dc.contributor.author | Raff, Horst | en |
dc.date.accessioned | 2009-03-11 | - |
dc.date.accessioned | 2009-04-09T07:48:36Z | - |
dc.date.available | 2009-04-09T07:48:36Z | - |
dc.date.issued | 2009 | - |
dc.identifier.uri | http://hdl.handle.net/10419/24884 | - |
dc.description.abstract | We 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 |
dc.language.iso | eng | en |
dc.publisher | |aKiel Institute for the World Economy (IfW) |cKiel | en |
dc.relation.ispartofseries | |aKiel Working Paper |x1488 | en |
dc.subject.jel | F31 | en |
dc.subject.jel | L13 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Exchange rates | en |
dc.subject.keyword | pass-through | en |
dc.subject.keyword | oligopoly | en |
dc.subject.stw | Luftfahrtindustrie | en |
dc.subject.stw | Duopol | en |
dc.subject.stw | Exchange Rate Pass-Through | en |
dc.subject.stw | Internationaler Wettbewerb | en |
dc.subject.stw | Theorie | en |
dc.subject.stw | EU-Staaten | en |
dc.subject.stw | USA | en |
dc.title | Exchange-rate misalignments in duopoly: the case of Airbus and Boeing | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 593508416 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:zbw:ifwkwp:1488 | en |
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