DP1590 On the Effects of Anti-dumping Legislation
|Author(s):||Pedro Pita Barros, Xavier Martinez-Giralt|
|Publication Date:||March 1997|
|Keyword(s):||Antidumping Legislation, Market Segmentation, One-way Trade|
|JEL(s):||F12, F13, K29, L13|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=1590|
We show that the nature and extent of trade is significantly affected by the pricing policy that firms are allowed to employ. A switch from discriminatory to non-discriminatory pricing (e.g. strict anti-dumping laws) leads to a switch from two-way trade to one-way trade. It is far from true that consumers will necessarily be favoured by such a policy switch. The distribution of gains is also significantly affected by relative country size.