Cross-Border Product Adoption: Individual Imports, Migrant Networks, and Domestic Retailers

David Argente, Esteban Mendez and Diana Van Patten
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David Argente: Yale University
Esteban Mendez: Central Bank of Costa Rica
Diana Van Patten: Yale University

No 2522, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: This paper studies how new varieties enter markets and become locally available. We provide causal evidence of demand externalities that operate in two steps. First, information about new varieties diffuses directly through real-world social ties among consumers. Combining the instrument with linked consumer--retailer data and a self-conducted retailer survey, we show that this response reflects learning about latent demand for varieties not yet stocked locally. Together, social diffusion and retailer learning generate demand multipliers that reshape local product availability and expand access to global variety.

Pages: 101 pages
Date: 2026-04-01
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