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Antidumping law as a collusive device

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  • Maurizio Zanardi

Abstract

. In the United States many antidumping petitions are withdrawn before the investigations are completed. Prusa (1992) argues that petitions are used by domestic industries to induce foreign industries into collusive agreements. In his model, all antidumping petitions should be withdrawn, which is not the case. This paper provides a model in which only some petitions are withdrawn. Withdrawal depends on two key parameters: coordination cost and bargaining power of domestic and foreign industries. A new data set is constructed to test the model on the U.S. experience for the period 1980–97. The econometric analysis supports the theoretical conclusions of the model. JEL classification: F13; D43 Loi anti‐dumping en tant que stratagème de collusion. Aux Etats‐Unis, de nombreuses plaintes contre des pratiques de dumping sont retirées avant que les enquêtes ne soient complétées. Prusa (1992) suggère que ces plaintes sont utilisées par les industries nationales pour inciter les industries étrangères à conclure des accords de collusion. Dans ce modèle, toutes les plaintes devraient être retirées, ce qui n’est pas le cas. Ce mémoire propose un modèle dans lequel seulement une portion des plaintes est retirée. Les retraits dépendent de deux paramètres clés : les coûts de coordination et le pouvoir de négociation des industries nationales et étrangères. Une base de données est construite pour mettre ce modèle au test pour les Etats‐Unis dans la période 1980–97. Les résultats de l’analyse économétrique supportent les conclusions théoriques du modèle.

Suggested Citation

  • Maurizio Zanardi, 2004. "Antidumping law as a collusive device," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(1), pages 95-122, February.
  • Handle: RePEc:wly:canjec:v:37:y:2004:i:1:p:95-122
    DOI: 10.1111/j.0008-4085.2004.005_1.x
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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