Coto-Martínez, Javier García-Alonso, María D. C. Levine, Paul
Year of Publication:
Department of Economics Discussion Paper, University of Kent 05,08
We extend the Benassy (1996) '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.
Taste for variety monopolistic competition Benassy effect open economy