ECON 20 Lecture Notes - Lecture 6: Predatory Pricing, Consumer Protection, Fixed Cost
19 May 2020
School
Department
Course
Professor
Document Summary
*john mcgee, predatory price cutting: the standard oil (n. j. ) case, journal of law and. What connection would mcgee draw between the standard oil case in 1911 and the clayton and. Focus on behavior you can"t cut prices, can"t use quantity discounts, can"t use anti comp behavior. If the monopoly raised prices and acted like a monopoly, people would enter, but they can protect themselves, that disproves the theoretical argument. Standard oil"s market share already fell by the time the case was started which means people were successfully entering. How does mcgee"s discussion of the fear of predatory pricing reflected in the robinson-patman. Both feel that it"s not in the interest of the predator firm to conduct price wars. To use predatory pricing to get monopoly. To get the power and money to use predatory pricing, you have to start from being a monopoly that"s where you get the power and money, you need the monopoly power to use that technique.
