Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market
American Economic Journal: Microeconomics
vol. 15,
no. 4, November 2023
(pp. 268-305)
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.Citation
Duch-Brown, Néstor, Lukasz Grzybowski, André Romahn, and Frank Verboven. 2023. "Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market." American Economic Journal: Microeconomics, 15 (4): 268-305. DOI: 10.1257/mic.20200254Additional Materials
JEL Classification
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- L13 Oligopoly and Other Imperfect Markets
- L63 Microelectronics; Computers; Communications Equipment
- L81 Retail and Wholesale Trade; e-Commerce
There are no comments for this article.
Login to Comment