A game theory analysis - dumping by multinational company and antidumping in China

Bingjie Li

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.