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| Carsten Eckel |
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| ''Market Integration and Market Concentration in Horizontally Differentiated Industries'' |
| ( 2005, Vol. 6 No.16 ) |
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| This paper derives the impact of market integration on equilibrium firm size and market concentration in horizontally differentiated industries. We show that market concentration (measured by the number of firms) can rise as a consequence of market integration if firms engage in R&D competition. We also demonstrate that whether concentration occurs or not depends on the R&D production function and on consumer preferences. This result implies that the welfare effects of market integration are not unambiguously positive. |
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| Keywords: International Trade |
JEL: F1 - Trade: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Sep 03 2005 | | Manuscript Accepted : Sep 07 2005 |
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