Software Provision and the Impact of Market Integration
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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Volume (Year): 19 (2011)
Issue (Month): 4 (09)
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References listed on IDEAS
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- James E. Anderson & Eric van Wincoop, 2004.
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
- BEHRENS, Kristian & GAIGNE, Carl & OTTAVIANO, Gianmarco I.P. & THISSE, Jacques-François, .
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- 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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