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A Strategic Analysis of Anti-dumping

In: The Political Economy of Anti-dumping Protection

Author

Listed:
  • Patricia Wruuck

Abstract

This part of the analysis examines anti-dumping from a strategic perspective. In doing so, it differs from other studies on AD but, also from the previous chapter. First, it acknowledges that the imposed measures we observe result from a selection process and are therefore non-random. Out of the sample of AD investigations that are initiated, only a subset is pursued to the final stage and actually ends with the imposition of measures. The analysis takes a closer look at this process and proposes a strategic model of AD protection in the first part of this chapter. A two-stage game is developed featuring an investigating country that considers the imposition of a measure and a target that can choose to retaliate. Modelling this interaction clarifies how players condition their choices, the selection that results from this process and the different outcomes that are finally realised. With the two-stage model considering implementation and reaction, the analysis proposes a theoretical rationale in order to improve an understanding of the implementation of restrictions as well as their potential escalation into what may be referred to as trade wars.

Suggested Citation

  • Patricia Wruuck, 2015. "A Strategic Analysis of Anti-dumping," Contributions to Economics, in: The Political Economy of Anti-dumping Protection, edition 127, chapter 0, pages 79-128, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-11224-4_4
    DOI: 10.1007/978-3-319-11224-4_4
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