Alfonso Mendieta () (School of Economic and Social Studies, University of East Anglia)
Abstract
Administered protection is not the only outcome of antidumping measures. This paper suggests a basic model of repeated interaction between a domestic and a foreign firm. Competing in prices in the importing market, antidumping action serves as the means to enforce and sustain tacit collusion between the firms. The main result is that price distortions by antidumping policy are a departure point for the achievement of the collusive outcome. Discount factors of future profits are altered relative to those observed under free trade, delaying domestic firm’s propensity to collude and prompting foreign firm’s.
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Volume (Year): XIV (2005) Issue (Month): 1 (January-June) Pages: 41-69 Download reference. The following formats are available: HTML,
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Handle: RePEc:emc:ecomex:v:14:y:2005:i:1:p:41-69
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Find related papers by JEL classification: D40 - Microeconomics - - Market Structure and Pricing - - - General G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
References listed on IDEAS 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.:
Reitzes, James D, 1993.
"Antidumping Policy,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 745-63, November.
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