Kikuchi, Toru and Iwasa, Kazumichi (2008): Competing Industrial Standards and the Impact of Trade Liberalization.
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The main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which consists of differentiated products. A product can be used only in combination with other products based on the same industrial standard. We examine the impact of trade liberalization (i.e., a decline in trade costs) on consumers' choice of a standard. It will be shown that the degree of indirect network effects, captured with substitution between differentiated products, plays an important role as a determinant of the impact of trade liberalization.
|Item Type:||MPRA Paper|
|Original Title:||Competing Industrial Standards and the Impact of Trade Liberalization|
|Subjects:||F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation|
|Depositing User:||Toru Kikuchi|
|Date Deposited:||21. May 2008 07:31|
|Last Modified:||12. Feb 2013 23:58|
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