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From Segmented Markets to Integrated Markets: an Analysis of Economic Integration and Antidumping Legislation

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  • Jota Ishikawa

Abstract

The paper examines how a movement from segmented markets to integrated markets affects the volume of trade, consumer prices, profits and welfare in a monopoly model. The monopolist can initially discriminate consumer prices among markets with trade costs but has to take arbitrage into account as economic integration proceeds. The analysis provides interesting insights into economic integration and antidumping law. It is shown that the extent of arbitrage and the shape of the marginal cost curve play crucial roles. Surprisingly, it is possible that neither consumers nor the monopolist gains from economic integration, and that antidumping legislation benefits consumers at the expense of producers.

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  • Jota Ishikawa, 2004. "From Segmented Markets to Integrated Markets: an Analysis of Economic Integration and Antidumping Legislation," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 706-722, September.
    • Handle: RePEc:bla:reviec:v:12:y:2004:i:4:p:706-722
    DOI: 10.1111/j.1467-9396.2004.00477.x
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    References listed on IDEAS

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    Cited by:

    1. Ishikawa, Jota & Morita, Hodaka & Mukunoki, Hiroshi, 2020. "Parallel imports and repair services," Journal of Economic Behavior & Organization, Elsevier, vol. 172(C), pages 137-160.
    2. Kenji Fujiwara, 2013. "A Win–Win–Win Tariff–Tax Reform under Imperfect Competition," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 857-867, November.
    3. Fujiwara, Kenji, 2014. "Pareto-improving tariff-tax reforms under imperfect competition," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 12-20.
    4. repec:kgu:wpaper:99 is not listed on IDEAS
    5. Marta Ferreira Dias & Silvia F. Jorge, 2017. "Market power and integrated regional markets of electricity: a simulation of the MIBEL," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(2), pages 45-67, November.
    6. 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.
    7. Yasunori Ishii, 2017. "Dumping in a product differentiated reciprocal trade industry emitting global pollution," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(2), pages 195-208, February.
    8. Jota Ishikawa & Eiji Horiuchi, 2012. "Strategic Foreign Direct Investment in Vertically Related Markets," The Economic Record, The Economic Society of Australia, vol. 88(281), pages 229-242, June.
    9. Kenji Fujiwara, 2014. "Tax Principles and Coordination of Trade and Domestic Policies Under Imperfect Competition," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 29-40, June.
    10. Kenji Fujiwara & Ryoma Kitamura, 2014. "A trade and domestic tax reform in imperfectly competitive markets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(6), pages 785-795, September.
    11. Kao, Kuo-Feng & Mukunoki, Hiroshi, 2021. "The effects of parallel trade in two-sided markets," Economics Letters, Elsevier, vol. 199(C).
    12. Tsuyoshi Toshimitsu, 2014. "Economic Integration, Quality Choice, and Monopoly," Discussion Paper Series 118, School of Economics, Kwansei Gakuin University, revised May 2014.

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