Uncovering the Sources of Cross-border Market Segmentation: Evidence from the EU and the US

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Auteurs
Date

3 avril 2024

Discipline
Type de document
Périmètre
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Identifiant
Source

Apollo - Entrepôt de l'université de Cambridge

Collection

Cambridge University Library’s

Organisation

University of Cambridge

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All Rights Reserved

Mots-clés Und

Geographic Market Integration LOP Deviations Product Availability Differences

Sujets proches En

Niche marketing Segmented market Primary sources Forerunners Primary sources

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J. Hoste et al., « Uncovering the Sources of Cross-border Market Segmentation: Evidence from the EU and the US », Apollo - Entrepôt de l'université de Cambridge, ID : 10670/1.6afcd3...

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We develop a new approach to measure the sources of cross-border goods market segmentation. Our cost-of-living approach uncovers the relative importance of price and product availability differences, while accounting for taste differences. We implement our methodology on regionally disaggregated consumer goods data in the EU and US. The analysis reveals that price, and especially, product availability differences are much larger between than within European countries, and are only marginally larger between than within US states. Our findings imply that US states are geographically integrated, whereas EU countries remain segmented, due to trade frictions that mainly relate to fixed costs.

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