Competing Industrial Standards and the Impact of Trade Liberalization
AbstractThe main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which consists of differentiated products. A product can be used only in combination with other products based on the same industrial standard. We examine the impact of trade liberalization (i.e., a decline in trade costs) on consumers' choice of a standard. It will be shown that the degree of indirect network effects, captured with substitution between differentiated products, plays an important role as a determinant of the impact of trade liberalization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8802.
Date of creation: 2008
Date of revision:
Other versions of this item:
- Toru Kikuchi & Kazumichi Iwasa, 2011. "Competing Industrial Standards and the Impact of Trade Liberalization," International Economic Journal, Taylor & Francis Journals, vol. 25(2), pages 269-284.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-31 (All new papers)
- NEP-INT-2008-05-31 (International Trade)
- NEP-NET-2008-05-31 (Network Economics)
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.:
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"Network Externalities and Comparative Advantage,"
4613, University Library of Munich, Germany.
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