The effects of antidumping legislation on the degree of product variety and social welfare
AbstractUsing a simple characteristic space model of monopolistic competition with two interdependent markets, this paper analyses the effects of the bilateral adoption of antidumping measures on the degree of product differentiation, as well as the relationships with the type of product arrangement and the implications for welfare. Under an arrangement where each domestic firm competes directly with two imported products (interleaved arrangement), the model reproduces some of the results that already exist in the literature, where these have been obtained in an oligopolistic context. Through the characterisation of the symmetric zero profit equilibrium, it is shown that under such an arrangement the degree of product variety is higher when governments do not impose bilateral restrictions on prices. By contrast, under an arrangement where each half of the market is made-up of products of the same nationality (split arrangement), the reciprocal imposition of antidumping legislation has no effect on either the degree of product variety or on social welfare.
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.
Bibliographic InfoArticle provided by Springer in its journal The Annals of Regional Science.
Volume (Year): 35 (2001)
Issue (Month): 4 ()
Note: Received: March 2000/Accepted: May 2001
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00168/index.htm
More information through EDIRC
Find related papers by JEL classification:
- D60 - Microeconomics - - Welfare Economics - - - General
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.