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Dumping in a Linder Model of Trade with Multiple Retail Channels

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  • Ling Wei Chung
  • James C. Hartigan

Abstract

The last decade has witnessed an accelerating adoption of AD laws by LDCs and their increasing usage against developed countries. Our model of third degree price discrimination with heterogenous consumers that have differing preferences for quality in the two countries suggests that this is likely to continue. Duopolistic interaction may yield bilateral dumping, or unilateral dumping in either direction, under free trade. Even when dumping is unidirectional, there is a compelling basis for the introduction of AD laws by both governments. This mitigates competition, which is beneficial for both firms, and portends pessimism for an abatement of this recent proliferation of AD laws and complaints.

Suggested Citation

  • Ling Wei Chung & James C. Hartigan, 2005. "Dumping in a Linder Model of Trade with Multiple Retail Channels," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 325-342, August.
    • Handle: RePEc:bla:rdevec:v:9:y:2005:i:3:p:325-342
    DOI: 10.1111/j.1467-9361.2005.00279.x
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    References listed on IDEAS

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    1. Motta, Massimo & Thisse, Jacques-Francois & Cabrales, Antonio, 1997. "On the Persistence of Leadership or Leapfrogging in International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 809-824, November.
    2. Michael P. Leidy & Bernard M. Hoekman, 1991. "Spurious Injury As Indirect Rent Seeking: Free Trade Under The Prospect Of Protection," Economics and Politics, Wiley Blackwell, vol. 3(2), pages 111-137, July.
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    Cited by:

    1. James C. Hartigan & Hylke Vandenbussche, 2010. "Why does the WTO have an Antidumping Agreement?," LICOS Discussion Papers 25310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Basyah, Mohammad & Hartigan, James C., 2007. "Analyst earnings forecast revisions and the persistence of antidumping relief," International Review of Economics & Finance, Elsevier, vol. 16(3), pages 383-399.

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