Taste For Variety And Optimum Product Diversity In An Open Economy
We extend the Benassy (1996) 'taste for variety' model to an open economy setting. With the Benassy effect, the market equilibrium is inefficient, openness reduces the varieties provided in the unconstrained optimum and there are potential gains from international coordination.
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Volume (Year): 61 (2009)
Issue (Month): 2 (04)
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