![]() Brown and Williamson Tobacco Corp., 1993). Zenith Radio Corp., 1986), and “predatory pricing schemes are implausible … and even more implausible when they require coordinated effort among several firms” (Brooke Group Ltd. ![]() ![]() Yet in the two most recent, precedent-setting predatory pricing cases, the Supreme Court observed that “there is a consensus among commentators that predatory pricing schemes are rarely tried, and even more rarely successful” (Matsushita Electric Industrial Co. Claims of large companies preying on their smaller competitors are commonplace, starting during the formation of trusts during the late nineteenth century up through charges against Wal-Mart today. In more general terms, predatory pricing is a price reduction that is only profitable because of added market power the predator gains from eliminating, disciplining, or otherwise inhibiting the competitive conduct of a rival or potential rival (Bolton, Brodley, & Riordan, 2000). The classic definition of predatory pricing is pricing below cost with the intention of running a competitor out of business. ![]()
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