Anti-Dumping Regulations: Anti-Competitive and Anti-Export
In a Bertrand duopoly model, it is shown that an anti-dumping regulation can be strategically exploited by the domestic firm to reduce the degree of competition in the domestic market. The domestic firm commits not to export to the foreign market which gives the foreign firm a monopoly in its own market. As a result the foreign firm will increase its price allowing the domestic firm to increase its price and its profits. If the products are sufficiently close substitutes then the higher profits in the domestic market are large enough to compensate for the loss of profits on exports.
|Date of creation:||Nov 2008|
|Publication status:||Published in Review of International Economics , Vol. 18, No. 5, 2010, pp. 796-806.|
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- Staiger, Robert W. & Wolak, Frank A., 1992.
"The effect of domestic antidumping law in the presence of foreign monopoly,"
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- Anderson, S. P. & Schmitt, N. & Thisse, J.-F., "undated". "Who benefits from antidumping legislation?," CORE Discussion Papers RP 1146, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Schmitt, Nicolas & Thisse, Jacques-François, 1992. "Who Benefits from Antidumping Legislation?," CEPR Discussion Papers 731, C.E.P.R. Discussion Papers.
- 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.
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- VEUGELERS, Reinhilde & VANDENBUSSCHE, Hylke, 1997. "European anti-dumping policy and the profitability of national and international collusion," SESO Working Papers 1997005, University of Antwerp, Faculty of Applied Economics.
- Wilfried Pauwels & Hylke Vandenbussche & Marcel Weverbergh, 2001. "Strategic Behaviour under European Antidumping Duties," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 75-99.
- Roger Clarke & David Collie, 2003. "Product differentiation and the gains from trade under Bertrand duopoly," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 658-673, August.
- Collie, David R & Roger Clarke, 2003. "Product Differentiation and the Gains from Trade under Bertrand Duopoly," Royal Economic Society Annual Conference 2003 47, Royal Economic Society.
- Falvey, Rod & Wittayarungruangsri, Sarut, 2006. "Market size and antidumping in duopolistic competition," European Journal of Political Economy, Elsevier, vol. 22(3), pages 771-786, September. Full references (including those not matched with items on IDEAS)
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