Network Effects and the Impact of Trade Liberalization

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms' profits despite intesified competition.

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Year of publication:	2007
Authors:	Kikuchi, Toru ; Kobayashi, Chiharu
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 6.2007, 4, p. 1-7
Publisher:	AccessEcon
Subject:	network effects

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	F1 - Trade ; D4 - Market Structure and Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005767635