American Economic Journal: Microeconomics
no. 4, November 2023
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.
Duch-Brown, Néstor, Lukasz Grzybowski, André Romahn, and Frank Verboven.
"Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market."
American Economic Journal: Microeconomics,
Trade Policy; International Trade Organizations
Empirical Studies of Trade
Oligopoly and Other Imperfect Markets
Microelectronics; Computers; Communications Equipment
Retail and Wholesale Trade; e-Commerce