Source Diversification and Import Price Risk
构建了一个理论框架，将进口价格风险与进口来源多样化联系起来，并用英国康乃馨进口数据估计模型，发现忽略价格风险会导致信息损失。
In this article, I present a theoretical framework and derive an empirical model that relates import price risk to the allocation of an import across exporting sources (source diversification). A differential approach to expected utility theory and firm demand is used to derive a model comparable to more popular demand systems such as the Rotterdam and AIDS models. The model is used in estimating carnation demand in the United Kingdom. Results show that while total carnation imports, expected prices and seasonality are important determinants of import demand by source, there is significant information loss when price risk is not considered.