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Network Effects and the Impact of Trade Liberalization

Author

Listed:
  • Toru Kikuchi

    (Kobe University)

  • Chiharu Kobayashi

    (Doshisha University)

Abstract

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms' profits despite intesified competition.

Suggested Citation

  • Toru Kikuchi & Chiharu Kobayashi, 2007. "Network Effects and the Impact of Trade Liberalization," Economics Bulletin, AccessEcon, vol. 6(4), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-06f10012
    as

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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume6/EB-06F10012A.pdf
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    References listed on IDEAS

    as
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    8. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
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    Cited by:

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    2. 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.

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    More about this item

    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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