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Actually your comment brings an idea into my head. What if loss leaders could be a great probe into whether or not the behavior is anti-competitive. I know loss
by beiller 6y ago
Actually your comment brings an idea into my head. What if loss leaders could be a great probe into whether or not the behavior is anti-competitive. I know loss leaders exist, but how do they exist in a positive aspect? They seem to purely exist in order to siphon off capital from one business arm in order to extinguish competition in the loss-leader's sector. It seems to be it gets at the crux if this issue.
- salawat 6y agoDing ding ding, we have a winner. At least until you realize most bars utilize the same mechanism. It needs to be more of a combination of a high degree of departure from one's primary industrial/service vertical as well to really work as a canary though.
- dannyw 6y agoLoss leaders are fine when they’re the same business. Like McDonalds offering a loss leading burger or drink; or even a cinema offering a slightly loss leading ticket to make up on concessions.
- numpad0 6y agoThe act of using loss leaders to destruct a market, beyond growing a business, is called “dumping”. It’s a very old tactic, some regulations do exist against it...