Antidumping protection and welfare in a differentiated duopoly

摘要

This paper employs a two-country Cournot model to investigate the protection and welfare effects of an antidumping (AD) duty and a price-undertaking policy under different dumping measures (i.e., injury margin and dumping margin) in a differentiated duopoly. We show that the welfare levels of the host country and the world as a whole are lower under a price-undertaking policy than an AD-duty policy. However, the former is superior to the AD-duty policy in terms of protection. These results are robust even if the firms engage in Bertrand competition.