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We build a two-country model of monopolistic competition with communications networks. A communications network is characterized by (1) the existence of large fixed costs of network provision, and (2) the presence of congestion. It is demonstrated that both the size of a country and the relative...
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In the existing literature on trade theory, relatively few attempts have been made to address the theme of communications networks and the role of time zones. The book illustrates, with simple models of international trade, how the introduction of communications networks and the utilization of...
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