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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Article provided by Economics Bulletin in its journal Economics Bulletin.
Volume (Year): 6 (2007) Issue (Month): 4 () Pages: 1-7 Download reference. The following formats are available: HTML,
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Handle: RePEc:ebl:ecbull:v:6:y:2007:i:4:p:1-7
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Find related papers by JEL classification: F1 - International Economics - - Trade D4 - Microeconomics - - Market Structure and Pricing
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Nicholas Economides, 1995.
"The Economics of Networks,"
Working Papers
94-24, New York University, Leonard N. Stern School of Business, Department of Economics, revised Sep 1995.
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