Product aggregation, market integration, and relationships between prices:An application to world salmon markets

Relationships between prices of goods offer motives of interest in at least two areas: market integration and product aggregation. There is a close re lationship between market integration and aggregation, which may increase t he usefulness of market integration studies. In this article, these relatio nships are developed and illustrated by an application to the world salmon market. It is shown that the Law of One Price holds for an international ma rket with five salmon species. This result has significant implications for the world salmon market regarding bath product aggregation in demand analy ses and international trade policy.