Policy makers often seek to integrate markets as a way to maximize social welfare. Prior research has examined the effect of market integration on social welfare (surplus) only at two extremes — when the markets are fully integrated, or, when they are fully isolated. But there is scarce...

Policymakers often seek to integrate markets as a way to maximize social welfare. Prior research has examined the effect of market integration on social welfare (surplus) only at two extremes -- when the markets are fully integrated and when they are fully isolated. But there is scarce...