Reply To: Predatory Pricing


I am with you on the notion that predatory pricing should be illegal is inane. If a company chooses to lower prices to gain market share or for whatever reason, that helps consumers and there is no reason for the government to get involved (indeed other than in cases of fraud or use of force/violence, the government should not be involved).

I am more interested in the creative ways that competitors can learn how to compete against a dominant or “monopolist” company.

Sometimes a company can compete on price by getting financing so they can improve their production, or they can create a better product, or service their product better and not have to compete on price.

The inability of companies to compete shouldn’t mean that the dominant player who achieved that position through foresight, skill and execution should be tossed off its perch by government.

The free market is the most democratic way of solving these issues.