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Antidumping Policy

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  • Reitzes, James D

Abstract

When an antidumping policy involves the imposition of duties, the threat of antidumping enforcement may alter strategic behavior under imperfect competition. This point is illustrated in a model where the foreign firm is a monopolist in its local market but competes with a domestic firm in the home country's market. The welfare effects of an antidumping policy are examined under quantity-setting and price-setting behavior with either perfect or imperfect substitutes. Imposing an antidumping policy frequently improves domestic welfare under quantity-setting behavior and typically worsens it under price-setting behavior. Surprisingly, foreign welfare may improve. Copyright 1993 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Reitzes, James D, 1993. "Antidumping Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 745-763, November.
    • Handle: RePEc:ier:iecrev:v:34:y:1993:i:4:p:745-63
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