Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/38761
Authors: 
Eckel, Carsten
Year of Publication: 
2009
Series/Report no.: 
BERG Working paper series on government and growth 63
Abstract: 
The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to them. This study shows that both predictions may no longer hold once adjustments in the retail sector are taken into account. I present a new model of retailing in general equilibrium and explore its implications for a number of different shocks. The results demonstrate that retail assortments may remain constant if consumers have a low preference for diversity, and that consumer prices can even rise if the retail density is sufficiently low.
Subjects: 
International Trade
Retailing
Diversity
Market Structure
Welfare
Monopolistic Competition
JEL: 
F12
L11
L81
ISBN: 
978-3-931052-70-6
Document Type: 
Working Paper

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