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- Newsgroups: sci.econ
- Path: sparky!uunet!usc!sdd.hp.com!ux1.cso.uiuc.edu!news.cso.uiuc.edu!ninja!studier
- From: studier@ninja.life.uiuc.edu (Jim Studier)
- Subject: Predatory Pricing Definition
- Message-ID: <studier.714435509@ninja>
- Sender: usenet@news.cso.uiuc.edu (Net Noise owner)
- Organization: University of Illinois at Urbana
- Date: Fri, 21 Aug 1992 22:18:29 GMT
- Lines: 20
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- It seems to me that the definition of predatory pricing should
- include the successful raising of prices after the predator drives the
- competitor out of business. For example suppose that company A lowers
- prices so that
- company B goes out of business and then doesn't raise them to higher
- levels than they were before. There can be several reasons
- for this such as the superior efficiency of A. Unless A can
- actually charge a monopoly price (increase profits by making fewer sales
- at higher prices) the episode is not an example of *successful*
- predatory pricing.
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- At least I wish that I could tell *what* definition is being used
- In the posts that I try to read.
-
- Jim Studier (studier@ninja.life.uiuc.edu)
-