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Product variety and competitive discounts

โœ Scribed by Daniel F Spulber

Book ID
113181100
Publisher
Elsevier Science
Year
1989
Tongue
English
Weight
885 KB
Volume
48
Category
Article
ISSN
0022-0531

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## Abstract We study the role of exchange rate variability in the firm's choice of whether to offer one or two varieties. We show that variability induces the firm to vertically segment markets (offer two varieties). This happens because variability in the exchange rate affects income dispersion an