By Richard Dale
Antidumping tasks -- legislations and laws.
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Additional resources for Anti-Dumping Law in a Liberal Trade Order
In general, consumers belonging to a market where price elasticity of demand is relatively low will pay a higher price than under simple monopoly, whereas those belonging to a market where elasticity is relatively high will pay less. Since it is reasonable to suppose that consumers' income levels will often be inversely correlated to elasticity of demand, this pricing structure will tend to favour the worse off at the expense of the better off. Nevertheless, the point should also be made that the disfavoured consumers will generally lose more than the benefited consumers gain, in the sense that they will be willing to compensate the gainers in order to remain under the simple monopoly pricing regime.
John H. Jackson, World Trade and the Law 0/ GA TT (Indianapolis: BobbsMerrill, 1969) pp. 403-6. 'Analysis ofthe Antidumping Laws ofthe Federal Republic ofGermany, France, Italy and the United Kingdom', International and Comparative Law Bulletin, Chicago, December 1965. Fifth General Report on the Activities 0/ the Community (Brussels and Luxembourg: Commission ofthe European Community, 1962) pp. 79-80. The following were parties to the Code: Australia, Austria, Belgium, Canada, Czechoslovakia, Denmark, the European Economic Community, Finland, France, the Federal RepublicofGermany, Greece, Hungary, Italy, Japan, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, the United Kingdom, the United States and Yugoslavia.
The consequence is that the dominant buyer achieves a cost advantage over his competitors which is not based on superior efficiency and that, for example, large-scale retailers may drive out of business smaller rivals who are no less efficient. This particular line of argument became popular in the United States during the earlY 1930s and led to the report ofthe Federal Trade Commission (USFTC) on chain stores which provided the rationale for passage of the Robinson-Patman Act in 1936. 18 But the evidence adduced by this report did not point to the existence of very considerable monopoly power on the part of the chain stores, the conclusion being that 85 per cent ofthe difference in selling price between chain and non-chain stores was attributable to the former's lower operating costs and even this figure has been authoritatively challenged as being too low.
Anti-Dumping Law in a Liberal Trade Order by Richard Dale