Ethnic Networks Slash Global Prices, But Too Much Can Backfire
The study looked at how connections between people from the same ethnic background in different countries affect prices. They found that when there are more people from the same ethnic group in two countries, prices tend to be more similar. This effect is strongest for Chinese networks, where prices are significantly lower when there are more Chinese people in both countries. However, this effect can reverse when the network becomes too large. The study did not find the same pattern for Indian or Japanese networks.