Trade Dumping and Antidumping

This chapter presents game theoretical models useful for studying the interactive, competitive plays and relevant decision-making regarding the dumping and antidumping actions between an importing nation and an exporting nation. The latter considers potentially dumping its product in the domestic market of the former, while the former attempts to protect its market and its domestic firms from exiting the market by implementing necessary trading strategies. Understanding how to deal with potential intruders, when to take actions, and what appropriate actions to take under different sets of conditions are very crucial both theoretically and practically, because countermeasures may or may not be effective depending on what conditions one is constrained with. The theoretical framework, presented in this chapter, will provide a better understanding of antidumping policies and their implications for regulators, policymakers, managers, and academicians, while the results presented herein can be readily employed in real-life scenarios, making the results presented in this chapter practically useful for understanding how international trade conflicts can be handled effectively.