Should Predatory Pricing be Legal?
Predatory pricing may be deemed illegal under U.S. antitrust laws. But shouldn’t be. It has been argued that predatory pricing should be an illegal strategy. Predatory pricing, however, results in lower prices for consumers. Competitors may be harmed, but the consumer benefits.
For anti competitive behavior to be established, harm to consumers not competitors should be required. So why is there a law against predatory pricing? How does predatory pricing harm competition? Does predatory pricing work?
This draft note I wrote in law school explains in further detail what predatory pricing is, including a definition of predatory pricing and why it is not a threat to consumer welfare and why it should be legal. Click the link below to read: