Title: Market integration and convergence to the Law of One Price: evidence from the European car market
Authors: Goldberg, PK ×
Verboven, Frank #
Issue Date: Jan-2005
Publisher: Elsevier science bv
Series Title: Journal of international economics vol:65 issue:1 pages:49-73
Abstract: This paper exploits the unique case of European market integration to investigate the relationship between integration and price convergence in international markets. Using a panel data set of car prices, we examine how the process of integration has affected cross-country price dispersion in Europe. We find surprisingly strong evidence of convergence towards both the absolute and the relative versions of the Law of One Price (LOOP). Our analysis illuminates the main sources of segmentation in international markets and suggests the type of institutional changes that can successfully reduce it. (C) 2004 Elsevier B.V. All rights reserved.
ISSN: 0022-1996
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of Econometrics, Leuven
× corresponding author
# (joint) last author

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