Trade protection and antitrust policies taking the oligopoly industry as an example

Abstract

This paper employs the Reciprocal Dumping Model of international trade to probe into the formulation of the Government's trade protection and antitrust policies in the oligopoly industry covering two countries. This paper shows: When the firms are fewer than some particular value, the home or foreign government can adopt protectionist policy through setting tariff and with this to exclude import firms competing by selling into this country. And for countries with production technology superiorities, the antitrust policy is unfavorable to the whole social welfare.

Keywords and phrases:

• Optimal strategy
• trade protection
• antitrust policy
• technology gaps