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The welfare effects of a european anti-dumping duty and price-undertaking policy

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  • Wilfried Pauwels
  • Linda Springael

Abstract

In the framework of its anti-dumping policy, the European Union can use two instruments: an anti-dumping duty and a price-undertaking. The objective of both instruments is to eliminate the price difference, on the European market, between a European product and a similar foreign product which is dumped on the European market. The authors first briefly look at the institutional framework within which the European Union operates, and at the actual use made of the two instruments since 1980. The main purpose of the paper is to show that, from a welfare point of view, an anti-dumping duty is always better than a price-undertaking. This result is very robust: it holds for quasi-linear preferences, under both Bertrand and Cournot competition, and irrespective of the timing of the firms' decisions. Copyright International Atlantic Economic Society 2002

Suggested Citation

  • Wilfried Pauwels & Linda Springael, 2002. "The welfare effects of a european anti-dumping duty and price-undertaking policy," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(2), pages 121-135, June.
    • Handle: RePEc:kap:atlecj:v:30:y:2002:i:2:p:121-135
    DOI: 10.1007/BF02299157
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    References listed on IDEAS

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    1. Richard Harris, 1985. "Why Voluntary Export Restraints Are 'Voluntary.'," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 799-809, November.
    2. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
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    Cited by:

    1. Laura ROVEGNO & Hylke VANDENBUSSCHE, 2011. "A comparative analysis of EU Antidumping rules and application," LIDAM Discussion Papers IRES 2011023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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