Persistent dumping, competition and welfare
In the case of persistent dumping, welfare effects are ambiguous. Therefore, the existing international trade theory cannot provide a clear rationale for policies to prohibit international price discrimination. Through a two-stage game on the endogenous foreign monopolist's dumping decision, this paper determines when persistent dumping will negatively affect the home country's total welfare in an oligopolistic domestic market in the absence of any anti-dumping duties. Key variables of interest in this research include: (i) production costs; (ii) the degree of substitutability among the products; and (iii) the number of domestic firms. With a linear demand and constant marginal cost functions, the model demonstrates that persistent dumping will reduce total welfare if the domestic market is relatively less concentrated, or if the products are close substitutes for each other.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 12 (2003)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RJTE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RJTE20|
When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:12:y:2003:i:1:p:19-37. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.