Abstract
We show that the nature and extent of trade is significantly affected by the pricing policy that firms are allowed to employ. A switch from discriminatory to non-discriminatory pricing (e.g., strict antidumping laws) leads to a switch from two-way trade to one-way trade. It is far from true that consumers will necessarily be favoured by such a policy switch. The distribution of gains is also significantly affected by relative country size.
Original language | English |
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Pages (from-to) | 53-72 |
Number of pages | 20 |
Journal | Regional Science and Urban Economics |
Volume | 29 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1999 |
Keywords
- Antidumping legislation
- Market segmentation
- One-way trade