We argue that the rise of antidumping protection and the proliferation of voluntary export restraints (VERs) are fundamentally interrelated. We show that both can be explained by a cost-based definition of dumping when the domestic government has incomplete information about the foreign firm's...

We study the determinants of trade policy decisions focusing specifically on antidumping and countervailing duty statutes administered by the International Trade Commission (ITC). Using detailed industry, import, and political pressure data we model ITC decision making, weighing the relative...

We examine the incentives for a government to levy an optimal tariff on a foreign monopolist. With complete information, the size of the tariff is proportional to the firm's efficiency. By contrast, if the government is not completely informed about costs, there exists an incentive for the...