Trade and Variety in a Model of Endogenous Product Differentiation

Beitrag in einer Fachzeitschrift


Details zur Publikation

Autorinnen und Autoren: Lorz O, Wrede M
Zeitschrift: B E Journal of Economic Analysis & Policy
Verlag: Walter de Gruyter
Jahr der Veröffentlichung: 2009
Band: 9
ISSN: 1935-1682
Sprache: Englisch


Abstract


This paper sets up a model of endogenous product differentiation to analyze the variety effects of international trade. In our model multi-product firms decide not only about the number of varieties they will supply but also about the degree of horizontal differentiation between these varieties. Firms can raise the degree of differentiation by investing variety-specific fixed costs. In this setting, we analyze how trade integration, i.e. an increase in market size, influences the number of firms in the market, the number of product varieties supplied by each firm, and the degree of differentiation between these varieties. Copyright © 2009 The Berkeley Electronic Press. All rights reserved.



FAU-Autorinnen und Autoren / FAU-Herausgeberinnen und Herausgeber

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik


Zitierweisen

APA:
Lorz, O., & Wrede, M. (2009). Trade and Variety in a Model of Endogenous Product Differentiation. B E Journal of Economic Analysis & Policy, 9.

MLA:
Lorz, Oliver, and Matthias Wrede. "Trade and Variety in a Model of Endogenous Product Differentiation." B E Journal of Economic Analysis & Policy 9 (2009).

BibTeX: 

Zuletzt aktualisiert 2018-09-08 um 17:23