Market Integration, Competition, and Welfare
AbstractThe current debate on the likely impact of completion of the market in the European Community focuses crucially on the nature of the market structure. It has been suggested that 1992 will move an industry from a segmented-markets equilibrium to one in which the national markets are fully integrated. We examine the effects of this form of market completion on prices, consumer welfare and profits using a theoretical model augmented by numerical simulations. We find that the effects of market integration can change qualitatively, according to the assumptions made about demand, the barriers to trade and the degree of concentration in the market.
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Bibliographic InfoPaper provided by Stockholm - International Economic Studies in its series Papers with number 499.
Length: 27 pages
Date of creation: 1991
Date of revision:
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Postal: UNIVERSITY OF STOCKHOLM, INSTITUTE FOR INTERNATIONAL ECONOMIC STUDIES, S- 106 91 STOCKHOLM SWEDEN.
Web page: http://www.iies.su.se/
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market ; economic equilibrium ; industry ; prices;
Other versions of this item:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F15 - International Economics - - Trade - - - Economic Integration
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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