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Strategic Responses to Antidumping Laws and Legal Interpretations

Strategic Responses to Antidumping Laws and Legal Interpretations: Producing for Export Markets Using Lawyers and Other Factors of Production

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This paper explores in the context of a stylized model of dumping some possible strategic responses to the use of cumulation and threat of material injury in dumping investigations. In particular, it is shown that these guidelines for investigations can change the payoff structure of competition abroad and thereby induce reduced competition and optimal-from an individual firm point of view-excess capacity.

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