Competing Industrial Standards and the Impact of Trade Liberalization:Revised and Enlarged
The main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which applies to a group of differentiated products. A product can be used only in combination with other products based on the same industrial standard.We examine the impact of trade liberalization (i.e., a decline in trade costs) on consumers f choice of a standard. It will be shown that the degree of indirect network effects, captured with substitution between differentiated products, plays an important role as a determinant of the impact of trade liberalization.
|Date of creation:||Aug 2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.econ.kobe-u.ac.jp|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Murray C. Kemp & Koji Shimomura, 1996.
"Gains from Trade in a Cournot-Nash General Equibrium,"
Discussion Paper Series
66, Research Institute for Economics & Business Administration, Kobe University, revised Jan 1998.
- Murray C. Kemp & Koji Shimomura, 2001. "Gains From Trade in a Cournot-Nash General Equilibrium," The Japanese Economic Review, Japanese Economic Association, vol. 52(3), pages 284-302.
- Iwasa, Kazumichi & Kikuchi, Toru, 2008. "Software Provision and the Impact of Market Integration: A Note," MPRA Paper 9315, University Library of Munich, Germany.
- Lembke Johan, 2002. "Global Competition and Strategies in the Information and Communications Technology Industry: A Liberal-Strategic Approach," Business and Politics, De Gruyter, vol. 4(1), pages 1-30, April.
- Chou, Chien-fu & Shy, Oz, 1996. "Do consumers gain or lose when more people buy the same brand," European Journal of Political Economy, Elsevier, vol. 12(2), pages 309-330, September.
- Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
- Farrell, Joseph & Klemperer, Paul, 2006.
"Coordination and Lock-In: Competition with Switching Costs and Network Effects,"
CEPR Discussion Papers
5798, C.E.P.R. Discussion Papers.
- Farrell, Joseph & Klemperer, Paul, 2007. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," Handbook of Industrial Organization, Elsevier.
- Farrell, Joseph & Klemperer, Paul, 2006. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," Competition Policy Center, Working Paper Series qt9n26k7v1, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Joseph Farrell & Paul Klemperer, 2006. "Co-ordination and Lock-in: Competition with Switching Costs and Network Effects," Economics Papers 2006-W07, Economics Group, Nuffield College, University of Oxford.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- 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, 09.
- Iwasa, Kazumichi & Kikuchi, Toru, 2008. "Software Provision and the Impact of Market Integration," MPRA Paper 10982, University Library of Munich, Germany.
- Kikuchi, Toru, 2007.
"Network Externalities and Comparative Advantage,"
4613, University Library of Munich, Germany.
- repec:hoo:wpaper:e-92-18 is not listed on IDEAS
- Neil Gandal, 2002. "Compatibility, Standardization, and Network Effects: Some Policy Implications," Oxford Review of Economic Policy, Oxford University Press, vol. 18(1), pages 80-91, Spring.
- Chou, Chien-fu & Shy, Oz, 1990. "Network effects without network externalities," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 259-270, June.
- Toru Kikuchi, 2005. "Interconnected communications networks and home market effects," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 870-882, August.
- Kenji Fujiwara, 2005. "Unilateral and Multilateral Gains from Trade in International Oligopoly," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 404-413, December.
When requesting a correction, please mention this item's handle: RePEc:koe:wpaper:0913. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Econ Kobe SysAdmin)
If references are entirely missing, you can add them using this form.