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They can finance the dumping of product at below market rates until they run the competition out of business, then corner the market for themselves.
by function_seven 6y ago
They can finance the dumping of product at below market rates until they run the competition out of business, then corner the market for themselves.
- missedthecue 6y agoYou cannot corner a market through price dumping. You can lose money until the newer firm dies, but once you raise prices again, guess what happens? The Baltimore Gas Company is a famous example of this. They didn't establish their monopoly until the maryland legislature enforced a utility charter that granted them the exclusive right to distribute gas in Baltimore.