• DOI:10.1016/J.JINTECO.2003.12.002
Corpus ID: 26850030

Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market

@article{Goldberg2001MarketIA,
  title={Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market},
  author={P. Goldberg and F. Verboven},
  journal={European Economics eJournal},
  year={2001}
}

P. Goldberg, F. Verboven

Published 2001

Economics

European Economics eJournal

This Paper exploits the unique experiment 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 Purchasing Power Parity. Our analysis illuminates the main sources of segmentation in… CONTINUE READING

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