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Market integration in network industries

Author

Listed:
  • MAULEON, Ana

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • VANNETELBOSCH, Vincent

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • VERGARI, Cecilia

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (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

  • MAULEON, Ana & VANNETELBOSCH, Vincent & VERGARI, Cecilia, 2008. "Market integration in network industries," LIDAM Discussion Papers CORE 2008025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2008025
    as

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    References listed on IDEAS

    as
    1. Gandal, Neil & Shy, Oz, 2001. "Standardization policy and international trade," Journal of International Economics, Elsevier, vol. 53(2), pages 363-383, April.
    2. Toru Kikuchi & Kazumichi Iwasa, 2007. "Indirect Network Effects and Trade Patterns," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-9.
    3. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    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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    More about this item

    Keywords

    compatibility; horizontal differentiation; network effect;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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