Why Do Firms Dump at a Loss? An Economies-of-Scale Explanation

Donghyun Park

Open Economies Review, 1998, vol. 9, issue 3, 259-264

Abstract: Dumping is an international form of standard monopolistic price discrimination. At the same time, economies of large-scale production can be an independent source of international trade. I combine the two insights to provide a possible explanation for the following paradox—products often seem to be dumped below costs. Copyright Kluwer Academic Publishers 1998

Keywords: international trade; dumping; economies of scale (search for similar items in EconPapers)
Date: 1998
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DOI: 10.1023/A:1008268717889

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