Taste for Variety and Optimum Product Diversity in an Open Economy

12 Pages Posted: 27 Apr 2009

See all articles by Javier Coto-Martínez

Javier Coto-Martínez

affiliation not provided to SSRN

María D. C. García-Alonso

affiliation not provided to SSRN

Paul Levine

School of Economics, University of Surrey

Abstract

We extend the Benassytaste 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.

Suggested Citation

Coto-Martínez, Javier and García-Alonso, María D. C. and Levine, Paul L., Taste for Variety and Optimum Product Diversity in an Open Economy. Bulletin of Economic Research, Vol. 61, Issue 2, pp. 127-138, April 2009. Available at SSRN: https://ssrn.com/abstract=1375883 or http://dx.doi.org/10.1111/j.1467-8586.2008.00296.x

Javier Coto-Martínez (Contact Author)

affiliation not provided to SSRN

No Address Available

María D. C. García-Alonso

affiliation not provided to SSRN

No Address Available

Paul L. Levine

School of Economics, University of Surrey ( email )

Guildford
Surrey GU2 7XH
United Kingdom
+44 1483 259 380 Ext. 2773 (Phone)
+44 1483 259 548 (Fax)

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