Antidumping, Intra-industry Trade and Quality Reversal
| Jazyk: | angličtina |
|---|---|
| Rok vydání: | 2015 |
| Zdroj: | International Economic Review. 56(3):777-803 |
| ISSN: | 1468-2354 0020-6598 |
| DOI: | 10.1111/iere.12122 |
| Popis: | We examine an export game where two (home and foreign) firms produce vertically differentiated products. The foreign firm is more R&D efficient and is based in a larger and richer market. The unique (risk-dominant) Nash equilibrium exhibits intra-industry trade, and the foreign producer manufactures a higher-quality product. When transport costs are low, unilateral dumping by the foreign firm arises; 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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