In an environment in which home firm costs are private information, home firm output can signal these costs to a foreign competitor and a home policymaker. High-cost home firms have an incentive to misrepresent themselves as low-cost. This is understood by the foreign firm and the home policymaker and results in the first-period optimal per-unit output subsidy to the home firm being less than it would be if home firm output was not a signal of home firm costs. These results are extended to the case of simultaneous signaling and signaling through price. Copyright 1998 by Blackwell Publishing Ltd.
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Volume (Year): 6 (1998) Issue (Month): 1 (February) Pages: 105-19 Download reference. The following formats are available: HTML
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Gasmi, Farid & Malin, Eric & Tandé, François, 2004.
"Lobbying in Antidumping,"
IDEI Working Papers
320, Institut d'Économie Industrielle (IDEI), Toulouse.
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