European anti-dumping policy and the profitability of national and international collusion
AbstractThis paper is the first to study the effect of European antidumping policy on market structure. We analyze the incentives for firms to engage in a domestic or international cartel of implicit collusion in a multi-stage setting and concentrate on how European antidumping policy influences the incentives for firms to collude domestically or internationally. The question whether antidumping regulation helps to establish, maintain or rather endanger full cartels as well as cartels restricted to domestic firms only is tackled. Our findings suggest that antidumping legislation can both have a procompetitive and an anticompetitive effect. Which case prevails depends crucially on the welfare objective function used by the European government and also on the cost asymmetry and the degree of product heterogeneity between domestic and foreign firms. In addition to market structure we also discuss welfare effects. We find that antidumping measures are capable of both increasing or decreasing total community welfare depending on the type of measures installed. (C) 1998 Elsevier Science B.V. All rights reserved.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/101535.
Date of creation: Jan 1999
Date of revision:
Publication status: Published in European economic review (1999-01) v.43, p.1-28
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Web page: http://www.kuleuven.be
antidumping regulation; market structure; rent-shifting; welfare; antidumping regulations; political-economy; ec; protection; oligopoly; law;
Other versions of this item:
- Veugelers, Reinhilde & Vandenbussche, Hylke, 1999. "European anti-dumping policy and the profitability of national and international collusion," European Economic Review, Elsevier, vol. 43(1), pages 1-28, January.
- Vandenbussche, Hylke & Veugelers, Reinhilde, 1996. "European Anti-dumping Policy and the Profitability of National and International Collusion," CEPR Discussion Papers 1469, C.E.P.R. Discussion Papers.
- Veugelers, Reinhilde & Vandenbussche, Hylke, 1996. "European anti-dumping policy and the prefitability of national and international colusion," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/219462, Katholieke Universiteit Leuven.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
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