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A billion ways. Here's just one: run at a loss until your competition is driven out of business. Then raise prices once you're a monopoly again. (This isn't a
by _emacsomancer_ 6y ago
A billion ways.
Here's just one: run at a loss until your competition is driven out of business. Then raise prices once you're a monopoly again. (This isn't a hypothetical either, but a standard practice.)
- missedthecue 6y agoThis doesn't work. You can cut prices and lose money until the upstart firms go out of business, but you cannot raise them afterwards or guess what will happen?
- function_seven 6y agoPotential upstarts can't get funding to start their business, because investors know you'll just bully them back out of the market. Unless they find another billionaire with pockets as deep as yours, and a willingness to wage a price war for years.
- _emacsomancer_ 6y agoYou'll become Walmart?
- missedthecue 6y agoWalmart has low prices on everything. If they are charging monopoly prices, why is their margin 3%?