Tariffs versus anti-dumping duties

Tariffs and anti-dumping duties are two important tools used to protect industries from foreign competition and to generate revenue. While the two tools have been studied extensively in separate contexts, little is known about their comparative effects. This paper compares their effects on prices, profits, government revenue, industry protection, and welfare in a two-country framework where a dominant firm in one country exports to the other inhabited by an oligopoly. Conditions under which one tool dominates the other for a given criterion are provided.