[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1989
Kiel Working Paper 387
When we refer to the EC 1992 these days we think about the introduction of the single-internal market, i.e. a market with no discrimination on the grounds of<the nationality of buyers and sellers as far as the member countries of the EC are concerned. This tends to lead us into deep waters when it might be prudent to stay in shallower ones, by saying that the internal market is a market with no internal frontiers, and thus with free traffic of goods, people, services, moneys, capital, investments, ideas etc. Depth, on the other hand, cannot be avoided when contemplating on the non-discrimination issue, e.g. on what would become of the other kinds of discrimination, which are not due to the nationality of buyers or sellers. A perfectly discriminating monopolist, for instance, would be allowed to trade his goods and services under the conditions of a single-internal market just like before under the conditions of the non-single internal market; if it happens that elasticities of demand differ among member countries this monopolist would - by discriminating purely on the grounds of economic reasoning - discriminate on grounds of nationality when taken by its face value.