When Do Low Prices Hurt Competition?
Lower prices are generally assumed to benefit consumers. However, predatory pricing – which artificially lowers prices and eliminates competition – is a bad thing for the consumer in the long run. In Brooke Group, the Supreme Court established guidelines for courts to determine when lower pricing is actually predatory pricing. In this video, Charlie Beller discusses the Brooke Group case and its impact on our digitized economy, which is increasingly dominated by free or zero-priced services.
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