4 ms·
As you said "in the short term". Once the competition is destroyed the consumer is at the predator's mercy.
by likeclockwork 3y ago
As 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.