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Software Provision and the Impact of Market Integration

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Author Info

  • Kazumichi Iwasa
  • Toru Kikuchi

Abstract

Both deeper market integration and advances in digital technology have driven particularly large decreases in the costs of intermarket software provision. In this note, we first explain the mechanism of how trade costs in uence the software provision decisions of software firms. Then, we investigate the transformation of production/trade patterns given gradually decreasing trade costs for software products. It is shown that, if two incompatible types of hardware exist, deeper market integration may reduce the variety of hardware technologies.

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File URL: http://hdl.handle.net/10.1111/j.1467-9396.2011.00975.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 19 (2011)
Issue (Month): 4 (09)
Pages: 685-696

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Handle: RePEc:bla:reviec:v:19:y:2011:i:4:p:685-696

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  1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics.
  2. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2007. "Countries, regions and trade: On the welfare impacts of economic integration," European Economic Review, Elsevier, vol. 51(5), pages 1277-1301, July.
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Cited by:
  1. Kikuchi, Toru & Iwasa, Kazumichi, 2008. "Competing Industrial Standards and the Impact of Trade Liberalization," MPRA Paper 8802, University Library of Munich, Germany.
  2. Toru Kikuchi & Kazumichi Iwasa, 2009. "Competing Industrial Standards and the Impact of Trade Liberalization:Revised and Enlarged," Discussion Papers 0913, Graduate School of Economics, Kobe University.

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