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Product variety and the demographic transition

✍ Scribed by Ricardo Andrés Guzmán; Jacob Louis Weisdorf


Book ID
116422476
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
99 KB
Volume
107
Category
Article
ISSN
0165-1765

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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