IDEAS home Printed from https://ideas.repec.org/a/aea/aejmic/v15y2023i4p268-305.html

Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market

Author

Listed:
  • Néstor Duch-Brown
  • Lukasz Grzybowski
  • André Romahn
  • Frank Verboven

Abstract

We develop a framework to evaluate the impact of market integration, accounting for spillovers between multiple distribution channels. We adapt the standard random coefficients logit demand model to allow for substitution between channels and consumer arbitrage across countries. We apply our framework to the European portable PC market, where geoblocking practices that restrict online cross-border trade have recently been banned. Consumers in high income countries gain most from price convergence, while consumers in other countries may be worse off. The total consumer and welfare gains from online market integration are more modest and mainly due to increased product choice rather than reduced price discrimination.

Suggested Citation

  • Néstor Duch-Brown & Lukasz Grzybowski & André Romahn & Frank Verboven, 2023. "Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market," American Economic Journal: Microeconomics, American Economic Association, vol. 15(4), pages 268-305, November.
    • Handle: RePEc:aea:aejmic:v:15:y:2023:i:4:p:268-305
    DOI: 10.1257/mic.20200254
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mic.20200254
    Download Restriction: no
    File URL: https://doi.org/10.3886/E179141V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20200254.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20200254.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/mic.20200254?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Menz, Jan-Oliver & Wieland, Elisabeth & Mehrhoff, Jens, 2022. "Estimating the impact of quality adjustment on consumer price inflation," Discussion Papers 49/2022, Deutsche Bundesbank.
    2. Canzian, Giulia & Mazzarella, Gianluca & Ronchail, Louis & Verboven, Frank & Verzillo, Stefano, 2025. "Evaluating the impact of price caps - Evidence from the European roam-like-at-home regulation," International Journal of Industrial Organization, Elsevier, vol. 103(PA).
    3. Duch-Brown, Néstor & Grzybowski, Lukasz & Romahn, André & Verboven, Frank, 2021. "Are online markets more integrated than traditional markets? Evidence from consumer electronics," Journal of International Economics, Elsevier, vol. 131(C).
    4. Bourreau, Marc & Manenti, Fabio M., 2023. "Selling cross-border in online markets: The impact of the ban on geoblocking strategies," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    5. Xavier d'Haultfoeuille & Isis Durrmeyer & Jean-François Fournel & Alessandro Iaria, 2025. "Price discrimination and online sales in the automobile industry," Working Papers hal-05157451, HAL.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmic:v:15:y:2023:i:4:p:268-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.