English, Article, Journal or magazine article edition: Price-cost margins and economic integration: How important is the pro-competitive effect? Oscar Bajo-Rubio; Carmen Díaz-Roldán; Antonio G. Gómez-Plana

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Bookmark: http://trove.nla.gov.au/version/160813
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Price-cost margins and economic integration: How important is the pro-competitive effect?
Author
  • Oscar Bajo-Rubio
  • Carmen Díaz-Roldán
  • Antonio G. Gómez-Plana
Physical Description
  • preprint
Notes
  • RePEc:fda:fdadef:04-02
  • In this paper we examine whether the conventional result of a greater degree of integration leading to lower price-cost margins (i.e., the pro-competitive effect), would hold when two countries integrate by forming a common market. We propose a general framework of reference, in order to assess the extent of the pro-competitive effect when the role of other variables is allowed for, both for a “small” and “large” common market. By solving the model, the price-cost margin of domestic firms would depend on a set of variables in addition to trade costs with the partner country, which might eventually offset the conventional result.
  • Economic integration, Pro-competitive effect, Price-cost margins.
  • RePEc:cea:doctra:e2004_62
Language
  • English
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