Network Externalities and Comparative Advantage
In this article I examine how the network externalities of communications activities and trading opportunities interact to determine the structure of comparative advantage. These interactions are examined by constructing a two-country, three-sector model of trade involving a country-specific communications network sector. The role of the connectivity of network providers, which allows users of a network to communicate with users of another network, is also explored.
|Date of creation:||2007|
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- Cremer, Jacques & Rey, Patrick & Tirole, Jean, 2000.
"Connectivity in the Commercial Internet,"
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