Rev Ind Organ (2013) 42:365–368
Antidumping and Industrial Organization
Robert M. Feinberg
Published online: 30 April 2013
© Springer Science+Business Media New York 2013
Abstract Although antidumping duties are instruments of trade policy, they are moti-
vated by and have potentially signiﬁcant impacts on domestic industry interests. The
articles in this special issue provide evidence on the effects of antidumping on domes-
tic ﬁrms and import patterns; in particular, they stress that these effects are not likely
to be uniform across all producers within an industry, and will often depend on how
domestic interests respond.
Keywords Antidumping · Trade policy · Industrial organization
Although antidumping duties are instruments of trade policy, they are motivated by
and have potentially signiﬁcant impacts on domestic industry interests. Dumping in
international trade is the sale in a foreign market at a price below what is thought to be
“fair value”. To the extent that “fair value” refers to home market price, international
price discrimination results; to the extent that it refers to economic cost (including a
normal return), predatory pricing may be the rationale.
Antidumping law in the U.S. goes back to the 1916 Antidumping Act, which focused
on the predatory pricing interpretation, and was rarely employed. The origin of modern
U.S. antidumping policy is the Antidumping Act of 1921, which was modiﬁed in Title
VII of the Tariff Act of 1930, and more recently in the Trade Agreements Act of 1979.
Predatory intent is no longer required, and the (usually) small market shares that are
associated with allegedly dumping foreign ﬁrms are generally too small credibly to
threaten recoupment of predatory losses. The requirements for antidumping duties are
both the presence of dumping, and “material injury” that results to domestic producers.
As some “injury” to a domestic ﬁrm will always occur from a lower price by a rival,
the question of “material injury” is then a matter of degree.
R. M. Feinberg (
Department of Economics, American University, Washington, DC 20016-8029, USA