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Old 09-25-2007, 09:30 AM
ianlippert ianlippert is offline
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Join Date: Apr 2005
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Default Re: Monopolies wouldn\'t exist in the free market?

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Worst counter-argument ever. Isn't the definition of predatory pricing selling below cost, aka, losing money?


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This isnt what we are worried about though, we are worried about the monopoly pricing that will eventually come in the future.

I think the inherant problem with the predatory pricing arguement is that its generally much harder to put people out of business than it is for businesses to open up shop. So you end up taking losses for longer than you are going to benefit from monopoly pricing. I have yet to see a convincing example of real world predatory pricing, and if it were economically viable its something we'd see a lot more of.
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