Dumping.

[TomCollins]

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Why are some people against dumping? How is it unfair competiiton?
If person B sells ham at 10 dollars, and I sell my ham at 5 dollars , make the other guy go broke then sell my ham at 15 dollars I will atract competition. I dont see how the price of my ham will stay at 15 dollars on the long run, am I overlooking something obvious?

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In the real world, developing a product costs a lot more than getting a pig and slaughtering it. If it costs millions or even billions of dollars to develop something, and there is a great likelyhood that someone will undercut my prices, why would I enter such a market?

[ojc02]

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Why are some people against dumping? How is it unfair competiiton?
If person B sells ham at 10 dollars, and I sell my ham at 5 dollars , make the other guy go broke then sell my ham at 15 dollars I will atract competition. I dont see how the price of my ham will stay at 15 dollars on the long run, am I overlooking something obvious?

[/ QUOTE ]

In the real world, developing a product costs a lot more than getting a pig and slaughtering it. If it costs millions or even billions of dollars to develop something, and there is a great likelyhood that someone will undercut my prices, why would I enter such a market?

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You would do it if you thought your manufacturing technique would be lower average cost than the existing market players. It would not be hard to get venture capital to develop and support your enterprise if it really was better. Liquidity in the capital markets helps this process along tremendously.

Even if you can't compete so well on average cost, you can attempt to differentiate your product so long as the product isn't too commoditized.

The only products where predatory pricing (selling at below average cost) *might* be a concern are highly commoditized products with a pre-existing highly efficient manufacturer.

Does anyone know of examples of predatory pricing?

[hmkpoker]

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Does anyone know of examples of predatory pricing?

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Wal-Mart, obv. They're hawking super-low prices right now just so they can establish their monopoly, and then, once they've outcompeted every retail store into oblivion, then they will gouge prices to the moon and your shaving cream will cost $20 a can and the Walton brats will go MWAHAHAHAHAHAHA!!!!!!!

[xorbie]

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Does anyone know of examples of predatory pricing?

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Wal-Mart, obv. They're hawking super-low prices right now just so they can establish their monopoly, and then, once they've outcompeted every retail store into oblivion, then they will gouge prices to the moon and your shaving cream will cost $20 a can and the Walton brats will go MWAHAHAHAHAHAHA!!!!!!!

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Actually the bigger problem with Wal-Mart is that it forces producers to lower prices, but I'm sure you knew that.

[ShakeZula06]

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Does anyone know of examples of predatory pricing?

[/ QUOTE ]

Wal-Mart, obv. They're hawking super-low prices right now just so they can establish their monopoly, and then, once they've outcompeted every retail store into oblivion, then they will gouge prices to the moon and your shaving cream will cost $20 a can and the Walton brats will go MWAHAHAHAHAHAHA!!!!!!!

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Actually the bigger problem with Wal-Mart is that it forces producers to lower prices, but I'm sure you knew that.

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Telling it's distibuters that they have to lower prices or they won't deal with them isn't force.

[xorbie]

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Does anyone know of examples of predatory pricing?

[/ QUOTE ]

Wal-Mart, obv. They're hawking super-low prices right now just so they can establish their monopoly, and then, once they've outcompeted every retail store into oblivion, then they will gouge prices to the moon and your shaving cream will cost $20 a can and the Walton brats will go MWAHAHAHAHAHAHA!!!!!!!

[/ QUOTE ]

Actually the bigger problem with Wal-Mart is that it forces producers to lower prices, but I'm sure you knew that.

[/ QUOTE ]
Telling it's distibuters that they have to lower prices or they won't deal with them isn't force.

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Shake it's difficult for me to have conversations with you when all you care about is some absurd notion of freedom/rights/force.

[xorbie]

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lol. It's funny (or tragic) how many people actually think this is the case. Walmart (AFAIK) has never used predatory pricing because their costs are so much lower than everyone elses. Also funny is that so many people misunderstand how walmart achieves their supremely low costs, it's not by squeezing their suppliers (although they do do this), it's because they have phenomenally low administrative costs. They have one HQ location, their executives share hotel rooms at cheap hotels when they travel around. What horrific capitalist excess!

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They also save a lot of money by not meeting environmental standards, cutting people to part time so they don't get benefits, forcing people to work off the clock and using state money to pay employee benefits.

[ShakeZula06]

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Does anyone know of examples of predatory pricing?

[/ QUOTE ]

Wal-Mart, obv. They're hawking super-low prices right now just so they can establish their monopoly, and then, once they've outcompeted every retail store into oblivion, then they will gouge prices to the moon and your shaving cream will cost $20 a can and the Walton brats will go MWAHAHAHAHAHAHA!!!!!!!

[/ QUOTE ]

Actually the bigger problem with Wal-Mart is that it forces producers to lower prices, but I'm sure you knew that.

[/ QUOTE ]
Telling it's distibuters that they have to lower prices or they won't deal with them isn't force.

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Shake it's difficult for me to have conversations with you when all you care about is some absurd notion of freedom/rights/force.

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Yes of course. Your defintion of force is apparently limitations on voluntary association and I'M the one with absurd notions. It's not force by defintion. But Ad hominems are much funner.

[hmkpoker]

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Actually the bigger problem with Wal-Mart is that it forces producers to lower prices, but I'm sure you knew that.

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Telling it's distibuters that they have to lower prices or they won't deal with them isn't force.

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Shake it's difficult for me to have conversations with you when all you care about is some absurd notion of freedom/rights/force.

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It's not that absurd. Capitalists get blamed for "forcing" (read: coercing through active threat) people to do things, but it's simply not the case.

The single greatest form of coercion against human beings is not greedy businesses. It is nature. Human beings are brought into this world with heavy consumptive needs. They must constantly consume air, food, water, shelter, security and any other number of needs and wants, or they will die. It's unfortunate, but that's how we were made.

[pvn]

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Does anyone know of examples of predatory pricing?

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Wal-Mart, obv. They're hawking super-low prices right now just so they can establish their monopoly, and then, once they've outcompeted every retail store into oblivion, then they will gouge prices to the moon and your shaving cream will cost $20 a can and the Walton brats will go MWAHAHAHAHAHAHA!!!!!!!

[/ QUOTE ]

Actually the bigger problem with Wal-Mart is that it forces producers to lower prices, but I'm sure you knew that.

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Telling it's distibuters that they have to lower prices or they won't deal with them isn't force.

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The word "force" isn't the problem with his statement. The word "problem" is.

Why are lower prices a problem? And regardless of what word you want to use to describe how WMT goes about achieving this reduction, what's objectionable about it?