Osaka Workshop on Economics of Institutions and Organization (#164)

This study explores the effects of the increase in tourists on the varieties of goods and services provided in a home economy. The increase may enlarge the range of varieties consumed by tourists and reduce that by local residents. We obtain a general condition for this variety-shifting effect occurring and derive some welfare implications. In addition, we examine whether the effect emerges in the models with two specific types of preference, the model with the CES utility function and that with the quasi-linear utility function cum quadratic subutility.Abstract： Takaaki Takahashi