Herbert Dow vs Zee Germans

[GoodCallYouWin]

Herbert Dow invented a new method of making bromine. This method was brilliant, much cheaper and as a result he undercut everyone in America and made a lot of money. He then went on to Europe.

Upon arriving in Europe, he was greeted by a German Cartel.

"Get out" they said.
"No" he said.

This didn't suit the German cartel very well, who wanted to keep their lucrative bromine market all to themselves. To get back at Herbert Dow they decided to engage in predatory pricing. They would undersell him in America and put him out of business forever. Evil Germans.

In Europe the going rate was 49 cents but this oppressive, evil capitalist was selling it at 36 cents. They decided to hit him where it hurts, by selling it at 25 cents in America. Once he was out of business at home, he would be forced to retreat with his tails between his legs. Another victory for the forces of the powerful!

Unfortunately for zee Germans, they did not count on one thing. Herbert Dow. He had his purchasing agent buy the bromine at 25 cents (which zee germans where selling for a loss), and resold it in Europe for 36 cents, making a huge profit; while the cartel was suffering losses. Shocked at the 'huge market', they lowered prices a few more times, until giving up and slinking home to Germany in defeat. They managed to negotiate with Dow and gave him access to all of Europe except for Germany, and he walked away extremely rich and satisfied; and thus died the predatory pricing strawman (until it was resurrected, years later, on internet forums as a way of scaring people into giving up their freedom).

[Nielsio]

I read this one today:

The Gates-Rockefeller Myth
http://www.mises.org/story/388


..on what happens when people accept that these things need to be 'fixed'.

[bobman0330]

That's a great story, but it doesn't really say much about cases where the incumbent isn't retarded.

[ConstantineX]

[ QUOTE ]
That's a great story, but it doesn't really say much about cases where the incumbent isn't retarded.

[/ QUOTE ]

I haven't really seen any credible anti-trust cases, and I'm sympathetic towards the movement. I don't think it's especially possible now; certainly not in products ordinary consumers buy (airplanes?)

[VayaConDios]

[ QUOTE ]
That's a great story, but it doesn't really say much about cases where the incumbent isn't retarded.

[/ QUOTE ]

If a realist had posted this example, it would have been derided by the utopians as "LOL 7-2o beat KK great example." Since it was posted by a utopian, it is logically unassailable.