Indirect Network E ects and Trade Liberalization
نویسندگان
چکیده
Indirect network e ects exist when the utility of consumers is increasing in the variety of complementary products available for use with an electronic hardware device. In this paper, we examine how trade liberalization a ects production structure in the presence of indirect network e ects. For these purposes we construct a simple twocountry model of trade with incompatible country-speci c hardware technologies. It is shown that, given that both countries' hardware Graduate School of Economics, Kobe University, Rokkodai 2-1, Kobe 657-8501, Japan; e-mail: [email protected]; tel: 81-75-501-3801
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