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Design of an Antidumping Law

Author

Listed:
  • C. Hartigan, James

    (University of Oklahoma)

Abstract

The GATT/WTO requires an investigation documenting unfair pricing and material injury before AD duties can be imposed. Governments have discretion as to how many periods are included in the injury assessment and how long duties remain in effect. An AD law can be designed so that duopolists implement Markov Perfect rather than Nash-Bertrand strategies, affecting the equilibrium only in low demand states. Material injury doesn’t occur, and no complaints are filed. This benefits the home firm and harms the foreign firm less than when duties are imposed. The home government also benefits when investigations and visible protection are costly.

Suggested Citation

  • C. Hartigan, James, 2000. "Design of an Antidumping Law," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 654-668.
    • Handle: RePEc:ris:integr:0150
    as

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    Cited by:

    1. Moore, Michael O., 2005. ""Facts available" dumping allegations: when will foreign firms cooperate in antidumping petitions?," European Journal of Political Economy, Elsevier, vol. 21(1), pages 185-204, March.

    More about this item

    Keywords

    Dumping; Injury; Investigation; Unfair;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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