EconPapers    
Economics at your fingertips  
 

Network Externalities, Transport Costs and Tariffs

Kenji Fujiwara ()

No 53, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper formulates a reciprocal market model of international duopoly with network externalities to reconsider welfare effects of reductions in transport costs and tariffs. Depending on the magnitude of network externalities, we show two possibilities. One of them, which emerges under strong network externalities, illustrates that freer trade unambiguously improves welfare for any initial level of trade barriers. This finding provides an affirmative evaluation of freer trade.

Keywords: network externality; duopoly; transport costs; tariffs (search for similar items in EconPapers)
Pages: 15 pages
Date: 2010-04, Revised 2010-04
New Economics Papers: this item is included in nep-int, nep-net and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
http://192.218.163.163/RePEc/pdf/kgdp53.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Network externalities, transport costs, and tariffs (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:53

Access Statistics for this paper

More papers in Discussion Paper Series from School of Economics, Kwansei Gakuin University Contact information at EDIRC.
Bibliographic data for series maintained by Toshihiro Okada ().

 
Page updated 2024-04-14
Handle: RePEc:kgu:wpaper:53