The effects of parallel trade in two-sided markets

Kuo-Feng Kao and Hiroshi Mukunoki

Economics Letters, 2021, vol. 199, issue C

Abstract: This study investigates the effects of parallel imports in two-sided markets, which may increase profits for manufacturers when products have a two-sided market nature. Additionally, parallel imports increase consumer surplus and social welfare in all countries if the network externalities from both sides are large enough. However, if one externality is small while the other is large, parallel imports can hurt consumers and welfare in all countries.

Keywords: Parallel trade; Two-sided market (search for similar items in EconPapers)
JEL-codes: F12 F13 L14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:199:y:2021:i:c:s016517652030481x

DOI: 10.1016/j.econlet.2020.109721

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