quality in the two countries suggests that this is likely to continue. Duopolistic interaction may yield bilateral dumping, or … unilateral dumping in either direction, under free trade. Even when dumping is unidirectional, there is a compelling basis for …

trade. The model shows how such rivalry naturally gives rise to "dumping" of output in foreign markets, and shows that such … dumping can be "reciprocal" -- that is, there may be two-way trade in the same product. Reciprocal dumpingis shown to be … monopoly distortions. Surprisingly,in the case of free entry and Cournot behaviour reciprocal dumping is unanibiuously …