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Market integration in network industries

Author

Listed:
  • Vincent Vannetelbosch

    (FNRS and CORE, Université catholique de Louvain)

  • Cecilia Vergari

    (Department of Economics, University of Bologne)

  • Ana Mauleon

    (FNRS and CEREC, FUSL, and CORE)

Abstract

What is the effect of product market integration on the market equilibrium in the presence of international network 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.

Suggested Citation

  • Vincent Vannetelbosch & Cecilia Vergari & Ana Mauleon, 2008. "Market integration in network industries," Economics Bulletin, AccessEcon, vol. 12(25), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08l10035
    as

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    References listed on IDEAS

    as
    1. Toru Kikuchi & Kazumichi Iwasa, 2007. "Indirect Network Effects and Trade Patterns," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-9.
    2. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    3. Gandal, Neil & Shy, Oz, 2001. "Standardization policy and international trade," Journal of International Economics, Elsevier, vol. 53(2), pages 363-383, April.
    4. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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