On optimal dumping

The dumping of goods on foreign markets at prices grievously below those on domestic markets is of great concern to producers and policymakers in the receiving countries. It would appear from theoretical literature that, provided retaliation does not take place, the countries perpetrating the deed have everything to gain. We shall demonstrate that dumping may not be welfare-improving for the dumper and that it may be appropriate for its government to discourage the practice. This is in contrast to what happens in practice; anti-dumping legislation is introduced invariably by the dumped-upon countries. -from Authors