Customisation vs. standardisation, international integration and consumer surplus

Olivier Gaussens, Sophie Lecostey () and Kiumars Shahbazi
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Olivier Gaussens: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Sophie Lecostey: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: Our model analyses the impact of the international integration of oligopolistic markets on consumer surplus when 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: - that integration (harmonisation of norms and standards) may reduce competition and consumer surplus; - that integration can bring about a reduction of consumer surplus even when 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.

Keywords: customisation; international market integration; market access costs; standardisation (search for similar items in EconPapers)
Date: 2009-09-03
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Published in 36th EARIE Annual Conference, Sep 2009, Ljubljana, Slovenia

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Related works:
Journal Article: Customisation vs. Standardisation: International Integration and Consumer Surplus (2009)
Working Paper: Customisation vs. standardisation: International integration and consumer surplus (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00602122

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