3 ms·

Lowering the price is good for consumers.

• pjc50 7y ago
  .. but only in the short term. The whole point of a loss leader is to be able to jack the price up later.
  • mlthoughts2018 7y ago
    Then competitors re-enter the market and drive the jacked up price back down. This phenomenon on its own is not anticompetitive at all. You’d need evidence of something entirely different like regulatory capture to prevent competitors from market re-entry or lobbying for laws that favor existing market leaders.