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International trade and retailing

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  • Eckel, Carsten

Abstract

The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to them. This study shows that both predictions may no longer hold once adjustments in the retail sector are taken into account. I present a new model of retailing in general equilibrium and explore its implications for a number of different shocks. The results demonstrate that retail assortments may remain constant if consumers have a low preference for diversity, and that consumer prices can even rise if the retail density is sufficiently low. --

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Bibliographic Info

Paper provided by Bamberg University, Bamberg Economic Research Group in its series BERG Working Paper Series with number 63.

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Date of creation: 2009
Date of revision:
Handle: RePEc:zbw:bamber:63

Contact details of provider:
Postal: D-96045 Bamberg
Phone: 0951/8632687
Fax: 0951/8632550
Web page: http://www.uni-bamberg.de/vwl/forschung/berg/
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Related research

Keywords: International Trade; Retailing; Diversity; Market Structure; Welfare; Monopolistic Competition;

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References

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