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Toru Kikuchi and Chiharu Kobayashi
''Network Effects and the Impact of Trade Liberalization''
( 2007, Vol. 6 No.4 )
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
JEL: F1 - Trade: General
D4 - Market Structure and Pricing: General
Manuscript Received : Oct 30 2006 Manuscript Accepted : Feb 11 2007

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