Customisation vs. Standardisation: International Integration and Consumer Surplus

Olivier Gaussens, Sophie Lecostey and Kiumars Shahbazi

Annals of Economics and Statistics, 2009, issue 93-94, 207-232

Abstract: Our model analyses the impact of the international integration of oligopolistic markets on consumer surplus where structural differences in demand (for example, cultural differences) allow firms to engage in the international segmentation of markets. Firms consequently elect to supply either a standardised variety which yields scale economies, or a variety customised to local needs. The principal findings are firstly that integration (harmonisation of norms and standards) may reduce competition and consumer surplus; and secondly that integration may bring about a reduction of consumer surplus even where it results in an increase in competition. These results persist when the possibility of entry is introduced and suggests that systematic harmonisation of norms and standards is not necessarily desirable.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.jstor.org/stable/27917390 (text/html)

Related works:
Working Paper: Customisation vs. standardisation: International integration and consumer surplus (2009)
Working Paper: Customisation vs. standardisation, international integration and consumer surplus (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2009:i:93-94:p:207-232

Access Statistics for this article

Annals of Economics and Statistics is currently edited by Laurent Linnemer

More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Laurent Linnemer ().