Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market

Néstor Duch-Brown, Lukasz Grzybowski, Andre Romahn and Frank Verboven
Authors registered in the RePEc Author Service: Néstor Duch Brown

American Economic Journal: Microeconomics, 2023, vol. 15, issue 4, 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.

JEL-codes: F13 F14 L13 L63 L81 (search for similar items in EconPapers)
Date: 2023
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Related works:
Working Paper: Evaluating the Impact of Online Market Integration-Evidence from the EU Portable PC Market (2022)
Working Paper: Evaluating the Impact of Online Market Integration - Evidence from the EU Portable PC Market (2020)
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DOI: 10.1257/mic.20200254

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