Antidumping, antitrust, and competition
antidumping, antitrust, competition policy, trade policy
This work develops a two-country, two-firm model of imperfect competition to show that antitrust policy may be anticompetitive both at home and abroad. Antidumping has a procompetitive effect abroad. At home antidumping is anticompetitive in a static framework but procompetitive in a repeated game. The anticompetitive effect of antidumping is shown to be enhanced by the presence of a domestic antitrust policy. If trade and antitrust policies are co-ordinated, welfare is found to be more sensitive to antitrust than to antidumping. Hence, antidumping and antitrust are imperfect substitutes.
Colonescu, C. (1997, August). Antidumping, antitrust, and competition. CERGE-EI Working Papers (115). doi:10.2139/ssrn.1540890
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