We examine an export game where two (home and foreign) firms produce vertically differentiated products. The foreign firm is more RD otherwise, reciprocal dumping occurs. For some parameters, a domestic antidumping policy leads to a quality reversal in the international market whereby the home firm becomes the quality leader. This policy is desirable for the implementing country, though world welfare decreases.
Anti-Dumping, Intra-Industry Trade and Quality Reversals
José L. Moraga‐González,J. Viaene
Published 2004 in Social Science Research Network
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- Publication year
2004
- Venue
Social Science Research Network
- Publication date
2004-11-18
- Fields of study
Business, Economics
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Semantic Scholar
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