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| Author: | Greenhut, M. L. Ohta, H. Sailors, J. |
| Title: | Reverse dumping : a form of spatial price discrimination. |
| Journal: | Journal of Industrial Economics
1985 : DEC, VOL. 34:2, p. 167-181 |
| Index terms: | PRICE THEORY DUMPING |
| Language: | eng |
| Abstract: | Joan Robinson's analysis of dumping under a spatial price theory framework is presented. The dumping of goods is shown to be a natural form of spatial pricing rather than an act of predatory design, i.e. dumping neither requires predatory motives, nor competition in markets where the goods are to be dumped. A simple spatial monopoly model is used to derive the firm's optimal price policy on sales to nearby and to distant customers under different demand and cost condition. It is suggested that 'reverse' dumping may or may not benefit the nearby 'home country' customers. International dumping of goods is simply a special case of intra-country spatial price discrimination. |
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