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Pepsi's pricing below cost, what's your best response?
Proving that a firm is pricing below its costs is tricky in practice.
This study reports consistent pricing below expected value in a laboratory market featuring a long-lived asset.
If the other guy is pricing below costs, you don't want to sell anything, that's the right intuition.
So in this case traditional concerns of abuse, such as pricing below marginal cost and product tying, don't really apply, and can actually benefit competition and consumers.
Even without pricing below its cost, a monopolist who benefits from economies of scale may foreclose a smaller, less efficient rival from the scale needed to compete.
Similar(34)
Prices below do not include drinks.
Prices below do not include the tax.
$25 a person (this and restaurant prices below include wine).
Prices below are for one person, including tip.
Prices below do not include the 7percenttaxax.
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