Change search
ReferencesLink to record
Permanent link

Direct link
Product Diversity, Trade, and Welfare
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1982 (English)Report (Other academic)
Abstract [en]

A two-sector general equilibrium model, where one sector features monopolistic competition, is employed to show that the opening up of international trade migh decrease the likelihood that a market economy exhibits excessive brand proliferation, relative to a first best optimum. The paper also considers the welfare improving potential of the second-best regulatory policies. One is a behavioral regulation that controls each firm's output, but leaves entry and exit free; the other is a structural regulation that determines the number of firms active on the market, but leaves to each firm to determine its output level. It is shown that the opening up of international trade tends to make structural regulation relatively more welfare improving than behavioral regulation.

Place, publisher, year, edition, pages
Stockholm: IIES , 1982. , 44 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 223
National Category
URN: urn:nbn:se:su:diva-41452OAI: diva2:330339
Available from: 2010-07-15 Created: 2010-07-15 Last updated: 2010-07-15Bibliographically approved

Open Access in DiVA

fulltext(4435 kB)145 downloads
File information
File name FULLTEXT01.pdfFile size 4435 kBChecksum SHA-512
Type fulltextMimetype application/pdf

By organisation
Institute for International Economic Studies

Search outside of DiVA

GoogleGoogle Scholar
Total: 145 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 59 hits
ReferencesLink to record
Permanent link

Direct link