NETWORK EXTERNALITIES AND COMPARATIVE ADVANTAGE |
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Authors: | Toru Kikuchi |
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Affiliation: | Graduate School of Economics, Kobe University, Japan |
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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. |
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Keywords: | comparative advantage network externalities |
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