This paper analyzes anti-dumping (AD) policies in a two-country model with
heterogeneous firms in monopolistic competition. Effective AD legislation in one country
imposes a no-dumping condition on firms exporting from the other country, altering their
pricing both domestically and abroad. Some firms with intermediate productivities cease
export activity, and entry shifts towards the AD protected country, which has now become
relatively more attractive. Protecting firms with AD therefore increases the number of firms
entering and eventually increases competition, and the consumers enjoy welfare gains. In
the country without AD legislation, there is a welfare loss due to fewer entrants.
参考资料：爱词霸