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Strategic Trade Policy in the Presence of Network Effects

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  • Harald Wiese

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.

Suggested Citation

  • Harald Wiese, 2002. "Strategic Trade Policy in the Presence of Network Effects," German Economic Review, Verein für Socialpolitik, vol. 3(2), pages 155-183, May.
    • Handle: RePEc:bla:germec:v:3:y:2002:i:2:p:155-183
    DOI: 10.1111/1468-0475.00056
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    References listed on IDEAS

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