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Indirect network effects exist when the utility of consumers is increasing in the variety of complementary products available for use with an electronic hardware device. In this paper, we examine how trade liberalization affects production structure in the presence of indirect network effects....
Persistent link: https://www.econbiz.de/10015216814
The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one region’s import infrastructure can affect firms’ location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import...
Persistent link: https://www.econbiz.de/10015217447
The main purpose of this study is to illustrate, with a simple monopolistic competition trade model, how trade liberalization (i.e., a decline in trade costs) can affect domestic entrepreneurs' decisions between domestic brands and foreign brands, and thus the degree of foreign brand...
Persistent link: https://www.econbiz.de/10015217519
An important source of trade with time zone differences is related to the “coincidence in time” aspect of service transactions. Trade across different time zones is gainful when fulfilling nighttime demand in one time zone by utilizing daytime supply in another time zone. This note...
Persistent link: https://www.econbiz.de/10015222690
The purpose of this study is to illustrate, with a simple three-region (located on a line), two-good (homogeneous good/differentiated high-tech products), two-factor (labor/``footloose'' capital) model, how falling transport costs can affect firms' location decisions and trade structure. It is...
Persistent link: https://www.econbiz.de/10015224945
The main purpose of this study is to illustrate, with a simple two-factor (skilled and unskilled labor) model, how a time-saving improvement in business-services trade benefitting from differences in time zones can have an impact on national factor markets. In doing so, we intend to capture the...
Persistent link: https://www.econbiz.de/10015231381
Indirect network effects exist when the utility of consumers is increasing in the variety of complementary software products available for use with an electronic hardware device. In this study, we examine how trade liberalization affects production structure in the presence of indirect network...
Persistent link: https://www.econbiz.de/10015235467
We propose a two-country monopolistic competition model of business service offshoring that captures the advantage conferred by time zone differences. We emphasize the role of the entrepreneurs, who decide how to produce business services (i.e., domestic service provision or service offshoring)....
Persistent link: https://www.econbiz.de/10010270534
This paper considers a two-period model of market entry with homogeneous products and switching costs. It is shown that the pro-competitive effect of a foreign firm's entry (i.e., unilateral trade liberalization) emerges before the entry. Also, conditions that are conducive to a competitive...
Persistent link: https://www.econbiz.de/10015257237
The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns. It takes the work of Kikuchi et al.(2008)'s Chamberlinian-Ricardian model as its point of departure, and extends the analysis to include...
Persistent link: https://www.econbiz.de/10015257820