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Market Integration, Competition, and Welfare

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Author Info

  • Haaland, J.I.
  • Wooton, I.

Abstract

The 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 Info

Paper provided by Stockholm - International Economic Studies in its series Papers with number 499.

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Length: 27 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:fth:stocin:499

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Keywords: market ; economic equilibrium ; industry ; prices;

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Cited by:
  1. Hiemenz, Ulrich (Ed.) & Gundlach, Erich (Ed.), 1994. "Regional integration in Europe and its effects on developing countries," Open Access Publications from Kiel Institute for the World Economy 794, Kiel Institute for the World Economy (IfW).
  2. Baldwin, Richard & Forslid, Rikard & Haaland, Jan I., 1995. "Investment Creation and Investment Diversion: Simulation Analysis of the Single Market Programme," CEPR Discussion Papers 1308, C.E.P.R. Discussion Papers.
  3. 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.
  4. Oscar Bajo-Rubio & Carmen Díaz-Roldán & Antonio G. Gómez-Plana, 2004. "Price-cost margins and economic integration: How important is the pro-competitive effect?," Economic Working Papers at Centro de Estudios Andaluces E2004/62, Centro de Estudios Andaluces.
  5. Anders Hoffmann, 2000. "The gains from partial completion of the single market," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(4), pages 601-630, December.
  6. Mercenier, J. & Akitoby, B., 1994. "On Intertemporal General-Equilibrium Reallocation Effects of Europe's Move to a Single Market," Cahiers de recherche 9401, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  7. Bröcker, Johannes & Schneider, Martin, 1999. "How does economic development in eastern Europe affect Austria's regions? A multiregional general equilibrium framework," Discussion Papers 1/99, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics.
  8. Claudia M. Buch & Robert M. Kokta & Daniel Piazolo, 2001. "Does the East Get What Would Otherwise Flow to the South? FDI Diversion in Europe," Kiel Working Papers 1061, Kiel Institute for the World Economy.
  9. Martinez-Giralt, Xavier & Pita Barros, Pedro Luis, 1997. "On the Effects of Anti-dumping Legislation," CEPR Discussion Papers 1590, C.E.P.R. Discussion Papers.
  10. Willenbockel, Dirk, 2004. "Specification choice and robustness in CGE trade policy analysis with imperfect competition," Economic Modelling, Elsevier, vol. 21(6), pages 1065-1099, December.
  11. Jan Haaland & Ian Wooton, 1998. "Antidumping jumping: Reciprocal antidumping and industrial location," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(2), pages 340-362, June.
  12. Azita Amjadi & L. Alan Winters & Alexander Yeats, 1995. "Transport Costs and Economic Integration in the Americas," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 465-488, September.

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