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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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Suggested Citation

  • 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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    Cited by:

    1. Anomita Ghosh & Rupayan Pal, 2017. "Welfare Ranking of Alternative Export Taxes Revisited," Economics Bulletin, AccessEcon, vol. 37(2), pages 1033-1044.
    2. Nasreen Nawaz, 2019. "Dynamics of economic efficiency in tariff and trade," Australian Economic Papers, Wiley Blackwell, vol. 58(4), pages 416-443, December.
    3. Kangsik Choi & Ki-Dong Lee, 2024. "Strategic delegation and tariff protection with network externalities," The Japanese Economic Review, Springer, vol. 75(1), pages 93-119, January.
    4. Tsaur-Chin Wu & Chih-Ta Yen & Hsiu-Wei Chang, 2023. "Network externalities, trade costs, and the choice of commodity taxation principle," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(5), pages 1203-1224, October.
    5. 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.
    6. Ghosh, Anomita & Pal, Rupayan & Song, Ruichao, 2024. "Network externalities, strategic delegation and optimal trade policy," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    7. Kangsik Choi & Ki‐Dong Lee, 2022. "Strategic delegation and network externalities under export rivalry market," Manchester School, University of Manchester, vol. 90(1), pages 1-19, January.

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