NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Jee-Hyeong Park

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Working Papers

September 2001Dynamic Pricing in the Presence of Antidumping Policy: Theory and Evidence
with Bruce A. Blonigen: w8477

Published: Blonigen, Bruce A. and Jee-Hyeong Park. "Dynamic Pricing In The Presence Of Antidumping Policy: Theory And Evidence," American Economic Review, 2004, v94(1,Mar), 134-154.

Antidumping (AD) duties are calculated as the difference between the foreign firm's product price in the export market and some definition of 'normal' or 'fair' value, often the foreign firm's product price in its own market. Additionally, AD laws allow for recalculation of these AD duties over time in what are known as administrative reviews. This paper examines for the first time the resulting dynamic pricing problem of a foreign firm that faces such an AD trade protection policy in its export market. When AD duties are certain for any dumping that occurs, we obtain the surprising result that dumping and AD duties should increase over time toward a stationary equilibrium value. Adding uncertainties prevalent in AD enforcement into our analysis changes these conclusions substantially and...

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