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0 sats \ 0 replies \ @Undisciplined 21 Oct \ parent \ on: Free market competition - good and bad econ
I can't spend all my time shooting down every underspecified hypothetical situation.
In general, if one market actor is sustaining losses and selling below the market rate other factors will render that unsustainable before it yields the profit they ultimately want.
The form that takes will differ by scenario, but it will be some combination of waiting them out or finding a way to make use of the below cost product they're offering.
If the competitors don't have the capital at hand, there are others who do. That means credit might be extended in what becomes a speculative attack on the predatory pricer and it might mean the smaller players get bought out by someone who can afford to wait.
Regardless of the form it takes. The attempt at predatory pricing won't recoup the losses later by jacking up prices.