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Why Do Firms Dump at a Loss? An Economies-of-Scale Explanation

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  • Donghyun Park

Abstract

Dumping is an international form of standard monopolistic price discrimination. At the same time, economies of large-scale production can be an independent source of international trade. I combine the two insights to provide a possible explanation for the following paradox—products often seem to be dumped below costs. Copyright Kluwer Academic Publishers 1998

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  • Donghyun Park, 1998. "Why Do Firms Dump at a Loss? An Economies-of-Scale Explanation," Open Economies Review, Springer, vol. 9(3), pages 259-264, July.
    • Handle: RePEc:kap:openec:v:9:y:1998:i:3:p:259-264
    DOI: 10.1023/A:1008268717889
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    References listed on IDEAS

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    1. Arye L. Hillman & Eliakim Katz, 1986. "Domestic Uncertainty and Foreign Dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 19(3), pages 403-416, August.
    2. Davies, Stephen W. & McGuinness, Anthony J., 1982. "Dumping at less than marginal cost," Journal of International Economics, Elsevier, vol. 12(1-2), pages 169-182, February.
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