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Market integration and network industries

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Author Info

  • Ana, MAULEON
  • Vincent, VANNETELBOSCH

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))

  • Cecilia, VERGARI

Abstract

What is the effect of product market integration on the market equilibrium in the presence of international 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://sites.uclouvain.be/econ/DP/IRES/2008-18.pdf
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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2008018.

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Length: 13
Date of creation: 01 Jun 2008
Date of revision:
Handle: RePEc:ctl:louvec:2008018

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Keywords: compatibility; horizontal differentiation; network effect;

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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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