The analysis of anti-dumping based on game with vertical structure under incomplete information

Starting from the perspective of public interest, Cournot model and Stackelberg model under incomplete information are applied to the anti-dumping duty imposed on the downstream import firm of the vertical structure. The Cournot equilibrium and Stackelberg equilibrium are solved respectively. To maximize the public interest, we obtain the optimal anti-dumping duties with the two equilibriums respectively. After that, the influence of several factors on the optimal anti-dumping duties is analyzed when taking the optimization of social welfare into account. We find that the bigger market size, higher domestic production costs, lower foreign production costs may cause a higher anti-dumping duty. On the contrary, the imposed anti-dumping duty may be lower.