TARIFFS AND TRADE LIBERALIZATION WITH NETWORK EXTERNALITIES

Kenji Fujiwara ()

No 71, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper constructs a reciprocal market model of intra-industry trade in network goods to consider the implications of network externalities for an optimal tari policy and the welfare e ects of bilateral tari reductions. We show that the degree of network externalities nontrivially a ects the sign of the Nash equilibrium tari . Then, we prove that network externalities amplify the gains from tari reductions. These results help better understand the implications of traderelated issues in network industries.

Pages: 20 pages
Date: 2011-05, Revised 2011-05
New Economics Papers: this item is included in nep-int and nep-net
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Citations: View citations in EconPapers (5)

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Journal Article: TARIFFS AND TRADE LIBERALISATION WITH NETWORK EXTERNALITIES (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:71

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