Comment by twoodfin
Yes, I can imagine it’s hard to prove, which is a pretty good indicator it’s a slippery concept to being with. Everyone wants to “eliminate the competition”, including your competition!
Yes, I can imagine it’s hard to prove, which is a pretty good indicator it’s a slippery concept to being with. Everyone wants to “eliminate the competition”, including your competition!
Yes, but the monopoly seller has already demonstrated that they will operate at a loss until their competitors go out of business, which is a pretty big deterrent to any new market entrants. They've also demonstrated that no one will be making any money until either the monopolist or the new entrant is out of business, so who would actually launch a new business in that environment?
The predatory pricing pattern the FTC would in theory sure over would be: selling items at an artificially low price until the competition goes out of business, then raising prices once you are the only seller left standing. It's the second step that makes it anticompetitive instead of just competitive