It is generally believed that price undertaking is a more amicable protection policy for a foreign dumping firm than an anti-dumping (AD) duty as the former allows the foreign dumping firm to keep the duty rents. However, this result contradicts the empirical finding in, who shows that only 41% of anti-dumping measures in EEC end up with price undertaking in 1981–2001, even though firms can commit to a minimum price instead of being imposed with an anti-dumping duty. From the perspective of the dumping firm, this paper shows that whether the price-undertaking police is more or less amicable than the AD duty is contingent upon the competition modes of the firms in the industry.
