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I think most of the people here lean towards libertarianism, which include minimum regulations and free market. I have the following thoughts on free market.
When there is a competition there are two ways to gain advantage. The first and desirable way is to make your product or service better for the consumer. This may mean cheaper, of higher quality, better functionality etc. The second way is to impede your competitors. One way to do that is of course to work with the regulators to make regulations that are more damaging to your competition than to you. But this is not the only way. There are many ways in which you can legally harm your competition in a way that is net negative for everybody. Examples of this may be building an ecosystem that traps users in (here the winner is Apple, but almost all large companies are trying to do that now), using scale as leverage to sign contracts that suppliers won't supply their competitors, and the classic using size to sell product below its production price until the competitors go bankrupt (this works well when barriers to entry are relatively high).
What I see is that when a niche is new and there is a lot of room for improvement, companies tend to prefer the first way. But as soon as the room for improvement is exhausted, the industry starts doing things in the second categories.
What do you think?
Predatory pricing is essentially a myth. There are almost no real world examples of it happening, which casts doubt on how good of a strategy it is. What happens, in an actual market environment, is a speculator with a ton of capital buys up all the below cost product until the producer stops and then they sell it at the normal market price. It's a basic arbitrage play. Alternatively, the competitors can just suspend operations and wait the under-cost producer out.
Almost all of the supposed problems with market competition that I've ever heard are either self-correcting through normal market processes or better than regulatory solution.
You may be interested to read or listen to some of Tom DiLorenzo's work on the subject. I think he covers this in How Capitalism Saved America.
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Speculators can't do that with services.
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They can't do the resell arbitrage, but they can do the second strategy of letting their competitor eat those losses until they can't sustain it anymore.
More broadly, there are winning competitive strategies to take when your opponent is opting for a losing strategy.
DiLorenzo has gone back through the historical records and every supposed instance of predatory pricing was bs. Most of the time, it was just an entrepreneur lowering prices permanently and when it was the actual goal it blew up in the person's face.
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This would work in cases where there are low fixed costs. Unfortunately this is not always the case. Usually there is rent to pay, maintenance of machines, which is needed even if the machine is idle, also salaries of employees, especially where you can't quickly hire all the workforce at once should you want to resume the operations.
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Credit markets can handle some of that. You still won't be sustaining as many losses as the competitor who is intentionally sustaining losses, in addition to the factors you mention.
There's a reason successful cases don't show up in the historical record. Predatory pricing is just a commie boogey man.
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I think that will depend on the size difference. A large conglomerate can get into a niche with many smaller players. It can operate a few years losing money on that particular thing. And even though it is sustaining more losses than the competitor, the competitor may be limited even by the smaller losses he is sustaining.
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Again, this doesn't exist in the historical record for a reason. It's not a plausible strategy.
If it is as easy as people make it sound, why isn't it common? Every business has competitors and none are documented to have pulled this off.
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I am not sure whether it is common or not. I am just using logical deduction here.
I see quite a few actually (current, not historical), but I don't want to delude the discussion with concrete example. Concrete examples are usually complex, and different sides always interpret them in a way that supports their case.