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| The phenomena of dumping, selling a good in the foreign market at a price lower than the domestic price, usually happens when a large company wants to expand and eliminate competition in the foreign market to consolidate as monopolies. In this work, we study this phenomena and we propose a simple mathematical model where a company that are competing in quantities with another one in a foreign market can expand without make dumping by changing its production quantity in the domestic market. We compare the profit in this strategy along several periods with the one obtained when dumping is committed and we observe when each strategy is preferred. |
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