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On the Effects of Anti-dumping Legislation

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  • Martinez-Giralt, Xavier
  • Pita Barros, Pedro Luis

Abstract

We show that the nature and extent of trade is significantly affected by the pricing policy that firms are allowed to employ. A switch from discriminatory to non-discriminatory pricing (e.g. strict anti-dumping laws) leads to a switch from two-way trade to one-way trade. It is far from true that consumers will necessarily be favoured by such a policy switch. The distribution of gains is also significantly affected by relative country size.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1590.

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Date of creation: Mar 1997
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Handle: RePEc:cpr:ceprdp:1590

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Related research

Keywords: Antidumping Legislation; Market Segmentation; One-way Trade;

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References

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  1. Anderson, S. P. & Schmitt, N. & Thisse, J.-F., . "Who benefits from antidumping legislation?," CORE Discussion Papers RP -1146, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Neven, Damien J & Phlips, Louis, 1985. "Discriminating Oligopolists and Common Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 133-49, December.
  3. Garella, Paolo G. & Martinez-Giralt, Xavier, 1989. "Price competition in markets for dichotomous substitutes," International Journal of Industrial Organization, Elsevier, vol. 7(3), pages 357-367.
  4. Armstrong, Mark & Vickers, John, 1993. "Price Discrimination, Competition and Regulation," Journal of Industrial Economics, Wiley Blackwell, vol. 41(4), pages 335-59, December.
  5. Norman, G. & Thisse, J.-F., . "Product variety and welfare under tough and soft pricing regimes," CORE Discussion Papers RP -1201, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Nicolas Schmitt, 1990. "Two-Country Trade Liberalization in an Address Model of Product Differentiation," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 654-75, August.
  7. Warren J Bilkey & Erik Nes, 1982. "Country-of-Origin Effects on Product Evaluations," Journal of International Business Studies, Palgrave Macmillan, vol. 13(1), pages 89-100, March.
  8. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  9. Haaland, Jan I. & Wooton, Ian, 1991. "Market Integration, Competition and Welfare," CEPR Discussion Papers 574, C.E.P.R. Discussion Papers.
  10. Messerlin, Patrick A & Reed, Geoffrey, 1995. "Antidumping Policies in the United States and the European Community," Economic Journal, Royal Economic Society, vol. 105(433), pages 1565-75, November.
  11. Venables, Anthony J, 1994. "Tariffs and Subsidies with Price Competition and Integrated Markets: The Mixed Strategy Equilibria," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 30-44, January.
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Cited by:
  1. Stefan Lutz & Mina Baliamoune-Lutz, 2003. "Mutual Recognition of National Minimum Quality Standards may Support International Convergence," Journal of Industry, Competition and Trade, Springer, vol. 3(4), pages 293-311, December.

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