The Optimal Antidumping Tariff Under Lobbying Competition and Information Searching Activity

Based on the model established by Grossman and Helpman, we study how the enterprise lobbying competition and the information searching activity affect the antidumping decision. Through analyzing the participator's utility maximization behavior, we prove the price of imported products and the importance the government attaches to the national welfare is inversely proportional with tariff, while the marginal revenue of domestic enterprise from protection is in proportion with tariff. The final tariff will go down with the number of foreign enterprise lobbying for preferred trade policy, and will go up with the volume of domestic market. After analyzing the affection of the information searching and free riding behavior, we find domestic enterprise would rather directly contribute government officer than collect information, while free riding damage to the enterprise cooperative enthusiasm.