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Software Provision and the Impact of Market Integration

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  • 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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Suggested Citation

  • Kazumichi Iwasa & Toru Kikuchi, 2011. "Software Provision and the Impact of Market Integration," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 685-696, September.
  • Handle: RePEc:bla:reviec:v:19:y:2011:i:4:p:685-696 DOI: j.1467-9396.2011.00975.x
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    File URL: http://hdl.handle.net/10.1111/j.1467-9396.2011.00975.x
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, pages 691-751.
    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. 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.
    2. Toru Kikuchi & Kazumichi Iwasa, 2011. "Competing Industrial Standards and the Impact of Trade Liberalization," International Economic Journal, Taylor & Francis Journals, pages 269-284.
    3. Toru Kikuchi & Kazumichi Iwasa, 2011. "Competing Industrial Standards and the Impact of Trade Liberalization," International Economic Journal, Taylor & Francis Journals, pages 269-284.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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