Strategic Trade Policy in the Presence of Network Effects

Wiese Harald
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Wiese Harald: Universität Leipzig,Leipzig, Germany

German Economic Review, 2002, vol. 3, issue 2, 155-183

Abstract: The paper analyzes strategic trade policy for national and international network effect goods. While tariffs are very effective in securing the domestic producer's sales in case of network effects, our results suggest that strategic trade policy does not pay from a welfare perspective. Another interesting result is the possibility of negative tariffs in equilibrium.

Date: 2002
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DOI: 10.1111/1468-0475.00056

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