Better the Devil We Know: How Sociology Informs the Debate Over Antidumping Laws

Trade and other governmental policy decisions are frequently made based on neoclassical economic theory, which in turn is based on simplifying assumptions that result in unrealistic predictions. In this thesis, I argue that sociology is an important social science that can help to inform economic theory in policy-making. Understanding how social relations affect market actors and institutions is crucial, as markets are themselves composed of social relationships. I present an example using antidumping regulations. Economic scholars have argued that antidumping laws should be abolished based on pure economic theory. I argue that, from a sociological perspective, antidumping laws serve to provide a necessary stabilizer for to markets, resulting in controlled competition and greater trade liberalization. Such laws should therefore be maintained.