TASTE FOR VARIETY AND OPTIMUM PRODUCT DIVERSITY IN AN OPEN ECONOMY

Javier Coto‐Martínez, María D. C. García‐Alonso and Paul Levine ()
Authors registered in the RePEc Author Service: Maria del Carmen Garcia-Alonso

Bulletin of Economic Research, 2009, vol. 61, issue 2, 127-138

Abstract: We extend the Benassy‘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.

Date: 2009
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https://doi.org/10.1111/j.1467-8586.2008.00296.x

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Working Paper: Taste for Variety and Optimum Product Diversity in an Open Economy (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:buecrs:v:61:y:2009:i:2:p:127-138

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