A game theory analysis - dumping by multinational company and antidumping in China
COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(2) 227-231
School of Economics, Xi’an University of Finance and Economics, Xi’an, 710065, China
Based on a dynamic game model, this paper analyses dumping by multinational firm and Chinese government’s antidumping behaviour. It is shown that no matter how many products are dumped in domestic market; Chinese authority should impose punitive damages against the foreign firm as long as the scale of antidumping duty is not too high to stop multinational company’s investment. This strategy will improve social welfare.