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.