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So yes, it’s not externally distinguishable and basically boils down to intent.
by haimez 7y ago
So yes, it’s not externally distinguishable and basically boils down to intent.
- omeid2 7y agoI am not sure what you mean by externally distinguishable but pattern-behavior is hard to hide. 1. undercut product x and y that Z Corp sales 2. wait for Z Corp to go out of business 3. Increase price of x and y VS 1. sale product x cheap 2. sale other products to people who buy x 3. continue to step 1 or terminate selling below market
- TeMPOraL 7y agoHow about: 1. Sell products x cheap and y at higher margin. (x happens to be what Z Corp also sells) 2. At some point in time, coincidentally after Z Corp folds, decide to stop selling x cheap. Was x the case of predatory pricing? Or was it just a loss leader to get people to buy y, and it's just a coincidence that the company abandoned it around the same time Z Corp gave up?
- sgift 7y agoI thought the difference is that in one case you sell below market price (loss leader) and in the other below production cost. So: 1$ production cost 5$ market price Your price: 3$ -> Loss leader .50ct -> Predatory pricing