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Market integration in network industries

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  • Vincent Vannetelbosch

    ()
    (FNRS and CORE, Université catholique de Louvain)

  • Cecilia Vergari

    ()
    (Department of Economics, University of Bologne)

  • Ana Mauleon

    ()
    (FNRS and CEREC, FUSL, and CORE)

Abstract

What is the effect of product market integration on the market equilibrium in the presence of international network externalities in consumption? To address this question, we set up a spatial two-country model and we find that the economic forces at work may have an ambiguous effect on prices.

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File URL: http://www.accessecon.com/pubs/EB/2008/Volume12/EB-08L10035A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 12 (2008)
Issue (Month): 25 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-08l10035

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  1. Gandal, N. & Shy, O., 1996. "Standardization Policy and International Trade," Papers 12-96, Tel Aviv - the Sackler Institute of Economic Studies.
  2. Toru Kikuchi & Kazumichi Iwasa, 2007. "Indirect Network Effects and Trade Patterns," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-9.
  3. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.
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