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Pricing below costs is the opposite of a problem for consumers (in the short term…). “Predation” in this case refers to competing businesses, who often have enj
by Robotbeat 3y ago
Pricing below costs is the opposite of a problem for consumers (in the short term…). “Predation” in this case refers to competing businesses, who often have enjoyed a long period of monopoly rents.
- likeclockwork 3y agoAs you said "in the short term". Once the competition is destroyed the consumer is at the predator's mercy.
- pixodaros 3y agoSometimes that is true, but if the barrier to entry is low (eg. ridehailing services), as soon as the predator raises prices, competitors will appear. If the barrier to entry is high (eg. telecommunications), there is usually some antitrust regulation.