Mr. Herbener –
Thank you so much for your quick reply. Apologies for taking so long to write back. I guess I assumed that I would receive a notification if someone replied (or perhaps I did, and it was lost in a sea of emails).
This is most helpful! I guess the critical piece is not whether or not firm A can put firm B out of business (because that is certainly a possibility), but whether or not firm A can withstand their losses given the fact that firms D,E,F,G, and H will certainly take advantage of the fact that firm A must raise their prices to such an extent to recoup their losses for their predatory pricing? Is that right?
So – the public may lose firm B as an option, but in that exchange, they have enjoyed very cheap diapers during the “predatory period”, and further enjoy an inrush of new competitors to the diaper market who will keep diaper prices low.
Hope I’m on the right track…
I never thought I would have the super-stars responding to me! How great!