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From Segmented Markets to Integrated Markets: an Analysis of Economic Integration and Antidumping Legislation

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  • Jota Ishikawa

Abstract

The paper examines how a movement from segmented markets to integrated markets affects the volume of trade, consumer prices, profits and welfare in a monopoly model. The monopolist can initially discriminate consumer prices among markets with trade costs but has to take arbitrage into account as economic integration proceeds. The analysis provides interesting insights into economic integration and antidumping law. It is shown that the extent of arbitrage and the shape of the marginal cost curve play crucial roles. Surprisingly, it is possible that neither consumers nor the monopolist gains from economic integration, and that antidumping legislation benefits consumers at the expense of producers. Copyright Blackwell Publishing Ltd 2004.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9396.2004.00477.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 12 (2004)
Issue (Month): 4 (09)
Pages: 706-722

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Handle: RePEc:bla:reviec:v:12:y:2004:i:4:p:706-722

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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Cited by:
  1. Tsuyoshi Toshimitsu, 2014. "Economic Integration, Quality Choice, and Monopoly," Discussion Paper Series 118, School of Economics, Kwansei Gakuin University, revised May 2014.
  2. Mukunoki, Hiroshi, 2004. "On the optimal external tariff of a free trade area with internal market integration," Japan and the World Economy, Elsevier, vol. 16(4), pages 431-448, December.
  3. Kenji Fujiwara, 2013. "Tax Principles and Coordination of Trade and Domestic Policies under Imperfect Competition," Discussion Paper Series 112, School of Economics, Kwansei Gakuin University, revised Nov 2013.
  4. repec:kgu:wpaper:99 is not listed on IDEAS
  5. Kenji Fujiwara & Ryoma Kitamura, 2013. "A trade and domestic tax reform in imperfectly competitive markets," Discussion Paper Series 099, School of Economics, Kwansei Gakuin University, revised Jan 2013.
  6. Fujiwara, Kenji, 2014. "Pareto-improving tariff-tax reforms under imperfect competition," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 12-20.

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