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Injury Investigations in anti-Dumping and the Super-Additivity Effect

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  • Poonam Gupta
  • Arvind Panagariya

Abstract

Empirical evidence shows that injury investigations in anti-dumping cases conducted by the United States International Trade Commission, the probability of a positive finding is higher when the number of defendant firms is larger, holding constant their total market share. In this paper we offer a theoretical explanation of this finding. We show that the presence of many exporters exacerbates the free-rider problem, which leads every firm to invest less on defense. Thus for the same market share, injury finding is more likely to be positive for many small sellers than a few large sellers.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/110.

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Length: 13
Date of creation: 01 Aug 2001
Date of revision:
Handle: RePEc:imf:imfwpa:01/110

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  1. Staiger, Robert W. & Wolak, Frank A., 1992. "The effect of domestic antidumping law in the presence of foreign monopoly," Journal of International Economics, Elsevier, vol. 32(3-4), pages 265-287, May.
  2. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
  3. repec:att:wimass:9413 is not listed on IDEAS
  4. Arvind Panagariya & Dani Rodrik, 1991. "Political-Economy Arguments for a Uniform Tariff," NBER Working Papers 3661, National Bureau of Economic Research, Inc.
  5. Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," NBER Working Papers 4696, National Bureau of Economic Research, Inc.
  6. Wendy L. Hansen & Thomas J. Prusa, 1996. "Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole," Departmental Working Papers 199422, Rutgers University, Department of Economics.
  7. Rodrik, Dani, 1986. "Tariffs, subsidies, and welfare with endogenous policy," Journal of International Economics, Elsevier, vol. 21(3-4), pages 285-299, November.
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