Predatory Pricing: The Elementary Economics
Predatory Pricing: The Elementary Economics
Page 1
When Does Predatory Pricing Work?
![]() Predator wants these to be SMALL:
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VS. |
![]() Predator wants these to be LARGE:
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An important asymmetry:
Slow Entry, but Quick Exits by Target Firms
Detroit-Philadelphia
Northwest’s and Spirit’s Average One-Way Fares
for “True Local” Passengers
Page 3
Detroit-Boston
Northwest’s and Spirit’s Average One-Way Fares
for “True Local” Passengers