Strategic Trade Policy in the Presence of Network Effects

✍ Scribed by Harald Wiese

• Book ID: 108561048
• Publisher: John Wiley and Sons
• Year: 2002
• Tongue: English
• Weight: 199 KB
• Volume: 3
• Category: Article
• ISSN: 1465-6485
• DOI: 10.1111/1468-0475.00056

✦ Synopsis

Abstract

The paper analyzes strategic trade policy for national and international network effect goods. While tariffs are very effective in securing the domestic producer's sales in case of network effects, our results suggest that strategic trade policy does not pay from a welfare perspective. Another interesting result is the possibility of negative tariffs in equilibrium.