4 ms·
Predatory pricing is the the general term. Dumping is predatory pricing done in the context of international trade. IIRC theres a page on the FTC website which
by pydry 3y ago
Predatory pricing is the the general term. Dumping is predatory pricing done in the context of international trade.
IIRC theres a page on the FTC website which condescendingly explains that while predatory pricing can theoretically exist in practice it's vanishingly rare and you can basically just assume it doesnt happen.
So there you go. Hear no evil see no evil.
- eropple 3y agoI used the term dumping specifically, because (to my understanding, and hectored at by an econ professor once who made it stick) it refers to trade out-of-your-home-market rather than purely "international trade"--and what 'home market' is is, itself, a thing for debate. If you parachute in with enormous sacks with dollar signs on them from Silicon Valley and engage in deep predatory pricing in other cities and states both within your country and without, I'm comfortable calling it dumping. Your other point wrt the FTC is, well...womp womp.
- pydry 3y agoEvery definition ive ever seen including the wikipedia page is pretty clear about it being specific to international trade and thats how Ive always understood it.
- hgsgm 3y agoYour memory is hyperbolic. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/single-firm-conduct/predatory-or-below-cost-pricing https://www.ftc.gov/advice-guidance/competition-guidance/gui...
- pydry 3y agoYep thats the page and no, it absolutely isnt hyperbolic: >Can prices ever be "too low?" The short answer is yes, but not very often. >courts, including the Supreme Court, have been skeptical of such claims. I can think of about 5 examples just off the top of my head (not just Uber) where it was clear and obvious and they got away with it. The courts are as skeptical as the FTC. Judge Jeffrey S. White tossed the suit against Uber despite how blindingly obvious it is that they do it.