Random Encounters and Information Diffusion about Markets

International openness enhances social interactions between citizens of different countries or regions and vice versa. Social exchanges, in turn, increase trade flows between countries and influence markets and prices. We analyze the increased mobility that follows from openness between two countries and its effects on market outcomes. The primary result of our analysis shows that at the limit, market prices tend to align with the duopoly solution. Nonetheless, this convergence can take two different paths depending on the size asymmetry between countries