> For a period of time, the prices are set unrealistically low to ensure competitors are unable to effectively compete with the dominant firm without making substantial loss. The aim is to force existing or potential competitors within the industry to abandon the market so that the dominant firm may establish a stronger market position and create further barriers to entry.[2] Once competition has been driven from the market, consumers are forced into a monopolistic market where the dominant firm can safely increase prices to recoup its losses.[3]
What you are describing is not predatory pricing, that's a big part of why I was confused.
> Funnily enough the second author got a good example but still failed to see it under his nose: public schools do have 90% of the market, and in many countries almost 100%. Obviously it works.
Please consider reading the article more carefully. Your interpretation requires the author to be an idiot.
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What you are describing about browsers is interesting. But it's more like bundling and cross subsidies. Neither Microsoft nor Google were ever considering making money from raising the price of their browser after competition had been driven out. That's required for predatory pricing.
> For a period of time, the prices are set unrealistically low to ensure competitors are unable to effectively compete with the dominant firm without making substantial loss. The aim is to force existing or potential competitors within the industry to abandon the market so that the dominant firm may establish a stronger market position and create further barriers to entry.[2] Once competition has been driven from the market, consumers are forced into a monopolistic market where the dominant firm can safely increase prices to recoup its losses.[3]
What you are describing is not predatory pricing, that's a big part of why I was confused.
> Funnily enough the second author got a good example but still failed to see it under his nose: public schools do have 90% of the market, and in many countries almost 100%. Obviously it works.
Please consider reading the article more carefully. Your interpretation requires the author to be an idiot.
---
What you are describing about browsers is interesting. But it's more like bundling and cross subsidies. Neither Microsoft nor Google were ever considering making money from raising the price of their browser after competition had been driven out. That's required for predatory pricing.