3 ms·
I think you have to have a really high standard of evidence for predation, because the cost of intervention to adress false positives (efficient firms undercutt
by oli5679 10y ago
I think you have to have a really high standard of evidence for predation, because the cost of intervention to adress false positives (efficient firms undercutting incumbents) is so expensive. Think about the short run consumer harm that would be caused by Uber, YouTube, Southwest, Walmart or Amazon being restricted to charging higher prices. You have to be sure that the prevented predation is sufficiently risky. In all cases incumbents have made predation claims. No price hikes have materialised so far in any of the markets.