International trade and retailing

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2597

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Retail and Wholesale Trade; e-Commerce
• Subject: International trade ; retailing ; diversity ; market structure ; welfare ; monopolistic competition ; Einzelhandelspreispolitik ; Einzelhandel ; Marktstruktur ; Diversifikation ; Neue Außenhandelstheorie ; Internationaler Wettbewerb ; Monopolistischer Wettbewerb ; Wohlfahrtseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eckel, Carsten
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/26642
• Last update: 10.03.2025, 11:45 AM CET