Injury Investigations in anti-Dumping and the Super-Additivity Effect : A Theoretical Explanation

Author/Editor:

Poonam Gupta ; Arvind Panagariya

Publication Date:

August 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Empirical evidence shows that injury investigations in anti-dumping cases conducted by the United States International Trade Commission, the probability of a positive finding is higher when the number of defendant firms is larger, holding constant their total market share. In this paper we offer a theoretical explanation of this finding. We show that the presence of many exporters exacerbates the free-rider problem, which leads every firm to invest less on defense. Thus for the same market share, injury finding is more likely to be positive for many small sellers than a few large sellers.

Series:

Working Paper No. 01/110

English

Publication Date:

August 1, 2001

ISBN/ISSN:

9781451853346/1018-5941

Stock No:

WPIEA1102001

Format:

Paper

Pages:

13

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