Antidumping Constraints and Trade Elimination

Aleš Cerný, Nicolas Schmitt
Schweizerische Zeitschrift für Volkswirtschaft und Statistik / Revue Suisse d'Economie politique et de Statistique / Swiss Journal of Economics and Statistics, Volume 131, Issue 3, 1995, Pages 441-452
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Abstract

This article investigates the international duopoly equilibrium when two countries impose antidumping constraints. It shows that, depending on the parameters of the model, three Nash equilibria exist: one in which both firms trade, one in which no firm trades and one in which a single firm trades.