'Facts Available' Dumping Allegations' : When Will Foreign Firms Cooperate in Antidumping Petitions?: A Theoretical Analysis

Foreign firms accused of dumping in the WTO system may face punitive duties if they do not cooperate with domestic investigative authorities. These punitive tariffs are typically based on domestic firms' allegations - so-called quot;facts availablequot; dumping margins. This paper analyzes a game between two Bertrand Nash competitors: a) domestic petitioner and b) a foreign respondent, as well as an administering authority. Foreign firm cooperation will depend on the interplay between compliance costs and the allegations of the domestic competitor. The final tariff and degree of cooperation will depend on the level of compliance costs chosen by the domestic authority