Exports as a signal of quality. A new approach to dumping

Uri Ben-Zion, Shabtai Donnenfeld

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Dumping, namely selling abroad at a price below the marginal cost of production, is the result of the monopolist's profit maximizing behavior. This result is obtained when the firm takes into account the informative role played by exports in the domestic market. The level of exports serves as a signal of the quality of the new product.

Original languageEnglish
Pages (from-to)373-378
Number of pages6
JournalEconomics Letters
Volume13
Issue number4
DOIs
StatePublished - 1 Jan 1983
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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