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Tariffs And Trade Liberalisation With Network Externalities

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  • KENJI FUJIWARA

Abstract

This paper constructs a reciprocal market model of intra-industry trade in network goods to consider the implications of network externalities for an optimal tari policy and the welfare e ects of bilateral tari reductions. We show that the degree of network externalities nontrivially a ects the sign of the Nash equilibrium tari . Then, we prove that network externalities amplify the gains from tari reductions. These results help better understand the implications of traderelated issues in network industries.
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  • Kenji Fujiwara, 2011. "Tariffs And Trade Liberalisation With Network Externalities," Australian Economic Papers, Wiley Blackwell, vol. 50(2-3), pages 51-61, September.
  • Handle: RePEc:bla:ausecp:v:50:y:2011:i:2-3:p:51-61
    DOI: j.1467-8454.2011.00413.x
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    1. Alberto Portugal‐Perez & José‐Daniel Reyes & John S. Wilson, 2010. "Beyond the Information Technology Agreement: Harmonisation of Standards and Trade in Electronics," The World Economy, Wiley Blackwell, vol. 33(12), pages 1870-1897, December.
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    1. repec:ebl:ecbull:eb-17-00359 is not listed on IDEAS
    2. Anomita Ghosh & Rupayan Pal, 2014. "Strategic trade policy for network goods oligopolies," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-039, Indira Gandhi Institute of Development Research, Mumbai, India.

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