Abstract

A two-period duopoly competition model is developed to analyze the behaviours of and motivations for both Chinese and European firms under European Union anti-dumping policies. Based on this, we bring forward some suggestions for Chinese firms to cope with EU anti-dumping. We get the following vital conclusions: when Chinese firms anticipate AD measures from EU, they should reduce export in the investigation period; EU firms will change their output based on profit maximization principle to influence the AD duty; and Chinese firms should focus on the strategic behaviours of EU firms to react to EU anti-dumping.

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