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Competing Communications Networks and International Trade

Competing Communications Networks and International Trade

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This paper investigates the effects of competing communication networks on trade patterns in a Chamberlinian-Ricardian model of monopolistically competitive firms with a continuum of industries that require communication services in production. We conclude that intraindustry trade between different networks is determined by the relative size of networks and technological differences, and that a network will not have an incentive to expand indefinitely, despite network externalities.

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Trade Patterns

Ⅳ. Conclusion

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