Network Effects and the Impact of Trade Liberalization

Toru Kikuchi and Chiharu Kobayashi ()
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Chiharu Kobayashi: Doshisha University

Economics Bulletin, 2007, vol. 6, issue 4, 1-7

Abstract: In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms' profits despite intesified competition.

Keywords: network; effects (search for similar items in EconPapers)
JEL-codes: D4 F1 (search for similar items in EconPapers)
Date: 2007-02-11
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Citations: View citations in EconPapers (1)

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