Antidumping, signaling and cheap talk
AbstractIn the United States, there is evidence that domestic non-filing firms do not always support dumping/countervailing duty investigations. Absent other factors, domestic firms have an unambiguous incentive to support petitions filed by other domestic producers. We argue that in cases where the non-complainant firm is not a significant importer or exporter, the most plausible explanation is that non-support acts as a costly signal of private information. Extending the model to allow firms to engage in cheap talk, such signaling can take place even in the absence of an investigation. This result provides an explanation for the puzzling observation that fewer antidumping investigations are filed than one would expect.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 75 (2008)
Issue (Month): 2 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505552
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- In-Koo Cho & David M. Kreps, 1997.
"Signaling Games and Stable Equilibria,"
Levine's Working Paper Archive
896, David K. Levine.
- Bruce A. Blonigen, 2006.
"Evolving discretionary practices of U.S. antidumping activity,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 39(3), pages 874-900, August.
- Bruce A. Blonigen, 2002. "Evolving Discretionary Practices of U.S. Antidumping Activity," University of Oregon Economics Department Working Papers 2003-20, University of Oregon Economics Department, revised 01 Aug 2003.
- Bruce A. Blonigen, 2003. "Evolving Discretionary Practices of U.S Antidumping Activity," NBER Working Papers 9625, National Bureau of Economic Research, Inc.
- Farrell, Joseph, 1986.
"Meaning and Credibility in Cheap-Talk Games,"
Department of Economics, Working Paper Series
qt4968n3fz, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Banks, Jeffrey S. & Sobel, Joel., 1985.
"Equilibrium Selection in Signaling Games,"
565, California Institute of Technology, Division of the Humanities and Social Sciences.
- Blonigen, Bruce A. & Bown, Chad P., 2003.
"Antidumping and retaliation threats,"
Journal of International Economics,
Elsevier, vol. 60(2), pages 249-273, August.
- Matthews, Steven A. & Okuno-Fujiwara, Masahiro & Postlewaite, Andrew, 1991.
"Refining cheap-talk equilibria,"
Journal of Economic Theory,
Elsevier, vol. 55(2), pages 247-273, December.
- M. Rabin, 2010.
"Communication Between Rational Agents,"
Levine's Working Paper Archive
539, David K. Levine.
- Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
- Freund, Caroline & Ozden, Caglar, 2004. "Loss aversion and trade policy," Policy Research Working Paper Series 3385, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.