Quaas, Martin F.; Stöven, Max T. - Institut für Volkswirtschaftslehre, … - 2014
The literature on trade in renewable resources implicitly assumes that the traded resources are perfect substitutes. We … model trade in renewable resources as stipulated not only by autarky price differences, but also by consumers' love of … variety. We show that the love-of-variety effect enables welfare gains from trade even if total consumption decreases. Total …
