 Trade and Communication CostsCanadian Journal of Economics, 1995, vol. 28, issue s1, 46-75 Abstract: Two models in which communication costs are a cost to trade are investigated. One model looks at the role of communication in determining the firms' geographic extent in the use of local factor services. Communication costs are modelled as a quasi-public-good network in which communication services are provided by an average cost-pricing monopolist. The network technology is subject to increasing returns, congestion effects, and network externalities. The second model focuses on communication for the purposes of international trade in goods with similar assumptions on the technology of communication as in the first model. In this model an important distinction is made between international equilibrium and global equilibrium. In both models the impact of reductions in communication costs on the market extent of firms, trade volumes, and productivity are examined. The models have generic multiple equilibria with quite different welfare and comparative static properties. Date: 1995 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:28:y:1995:i:s1:p:46-75 Ordering information: This journal article can be ordered from Access Statistics for this article Canadian Journal of Economics is currently edited by Zhiqi Chen More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC. |
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