Network Externalities and Comparative Advantage

Kikuchi, Toru (2007): Network Externalities and Comparative Advantage. Forthcoming in: Bulletin of Economic Research

Abstract

In this article I examine how the network externalities of communications activities and trading opportunities interact to determine the structure of comparative advantage. These interactions are examined by constructing a two-country, three-sector model of trade involving a country-specific communications network sector. The role of the connectivity of network providers, which allows users of a network to communicate with users of another network, is also explored.

• Item Type: MPRA Paper
• Institution: Kobe University
• Language: English
• Keywords: Network Externalities; Comparative Advantage
• Subjects: F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation

References

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