2 ms·
A "dumping" period where your business gains marketshare and undercuts competitors to drive them under is an essential part of establishing monopoly power.
by droopyEyelids 4y ago
A "dumping" period where your business gains marketshare and undercuts competitors to drive them under is an essential part of establishing monopoly power.
- pc86 4y agoAlso strangely enough it's illegal if you're already a successful company and try to do it in a new vertical, but completely fine if you're a couple unknowns with a few hundred million of venture capital.
- 21723 4y agoNinety-nine percent of private equity profits come from taking strategies that are illegal with regulated, public companies and applying them to unregulated assets. And venture capital is a subset of private equity. Almost every conversation VCs have amongst themselves would be considered market manipulation if it pertained to an exchange-traded company, and of course the fact that it's all insider trading goes without saying. So no one should be surprised.
- pc86 4y agoThis is one of those things that sounds right, and I'm inclined to believe, but I've never read any in-depth discussion of it so I'm hesitant as it's sort of confirming my own bias without a ton of concrete evidence.
- cannaceo 4y agoDumping doesn't work unless there is customer lock-in. Many companies believe they have moats and find their moats have evaporated 2 years later.