Nestor Duch-Brown, Lukasz Grzybowski, André Romahn, Frank Verboven, 19 August 2020

Does the internet make international markets more integrated? And if not, what can we expect from recent EU policies that promote the Digital Single Market by banning restrictive distribution agreements such as geo-blocking? This column sheds light on these questions using detailed data for consumer electronics markets. The evidence indicates that online distribution channels are not more integrated than traditional bricks-and-mortar channels. Preventing geo-blocking practices would promote integration in the form of reduced international price differences, but this would mainly have distributional effects from consumers in low-income countries to those to high-income countries. 

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