Reciprocal Dumping under Antidumping Enforcement

In a dynamic extension of the reciprocal dumping approach, oligopolistic firms producing imperfect substitutes use the carrot and stick strategy to enforce cooperative behavior. When dumping occurs, firms lobby for tariffs as punishment. After a finite punishment period, the non-dumping equilibrium...

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Bibliographic Details
Main Authors: Nilanjan Banik, John Gilbert
Format: Article
Language:English
Published: Emerald Publishing 2006-05-01
Series:Journal of International Logistics and Trade
Online Access:https://www.emerald.com/insight/content/doi/10.24006/jilt.2006.4.1.1/full/pdf
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author Nilanjan Banik
John Gilbert
author_facet Nilanjan Banik
John Gilbert
author_sort Nilanjan Banik
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description In a dynamic extension of the reciprocal dumping approach, oligopolistic firms producing imperfect substitutes use the carrot and stick strategy to enforce cooperative behavior. When dumping occurs, firms lobby for tariffs as punishment. After a finite punishment period, the non-dumping equilibrium is restored. Conditions are derived on the degrees of substitutability and observability that allow non-dumping under an infinite horizon. The model suggests the degree of substitutability between goods and the market interest rate, affect the likelihood of dumping.
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spelling doaj.art-1fc5944f78cf4da88d154bf33ed475452023-11-17T10:48:37ZengEmerald PublishingJournal of International Logistics and Trade1738-21222508-75922006-05-014111510.24006/jilt.2006.4.1.1Reciprocal Dumping under Antidumping EnforcementNilanjan Banik0John Gilbert11Center for Advanced Financial Studies Institute for Financial Management and Research, Chennai, Tamil Nadu, India2Department of Economics, Utah State University, USAIn a dynamic extension of the reciprocal dumping approach, oligopolistic firms producing imperfect substitutes use the carrot and stick strategy to enforce cooperative behavior. When dumping occurs, firms lobby for tariffs as punishment. After a finite punishment period, the non-dumping equilibrium is restored. Conditions are derived on the degrees of substitutability and observability that allow non-dumping under an infinite horizon. The model suggests the degree of substitutability between goods and the market interest rate, affect the likelihood of dumping.https://www.emerald.com/insight/content/doi/10.24006/jilt.2006.4.1.1/full/pdf
spellingShingle Nilanjan Banik
John Gilbert
Reciprocal Dumping under Antidumping Enforcement
Journal of International Logistics and Trade
title Reciprocal Dumping under Antidumping Enforcement
title_full Reciprocal Dumping under Antidumping Enforcement
title_fullStr Reciprocal Dumping under Antidumping Enforcement
title_full_unstemmed Reciprocal Dumping under Antidumping Enforcement
title_short Reciprocal Dumping under Antidumping Enforcement
title_sort reciprocal dumping under antidumping enforcement
url https://www.emerald.com/insight/content/doi/10.24006/jilt.2006.4.1.1/full/pdf
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