Predatory pricing in Canada
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Predatory pricing in Canada the law and the economics by D. G. McFetridge

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Published by Law and Economics Programme, Faculty of Law, University of Toronto in [Toronto] .
Written in English


  • Antitrust law -- Canada.,
  • Competition, Unfair -- Canada.

Book details:

Edition Notes

Statementby Donald G. McFetridge and Stanley Wong.
SeriesLaw and economics workshop series -- no.WSVI-17
ContributionsWong, Stanley.
The Physical Object
Pagination79 p. in various pagings ;
Number of Pages79
ID Numbers
Open LibraryOL21328149M

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Predatory pricing involves charging very low prices, the aim being to get rid of competitors so that the supplier can charge considerably higher prices later. The predator is willing to sell at a loss – below cost – for a period, in the hope that its rivals either go bust or decide stop selling that product.   Predatory pricing, also known as undercutting, is a pricing strategy where a dominant firm deliberately reduces prices of a product or service to loss-making levels in the short-term. The aim is that existing or potential competitors will be foreclosed from the market, as they will be unable to effectively compete with the dominant firm without making a loss. Under Canada’s competition laws, predatory pricing occurs when an incumbent with market power sets its prices below avoidable costs. There’s an important distinction between price cuts that reflect a firm’s genuine efforts to enhance value or performance to better serve customers, and predatory pricing to drive out the competition. A. Predatory pricing The traditional theory of predatory pricing is straightforward. The predator, already a dominant firm, sets its prices so low for a sufficient period of time that its competitors leave the market and others are deterred from entering. Assuming that the predator and its victims are equally efficient firms, this.

Predatory pricing can be an anti-competitive act under section 79(1)(b) of the Competition Act, R.S.C. , c. C (Competition Act).Several types of predatory conduct are included in the non-exhaustive list of anti-competitive acts under section 78 of the Competition Act, namely the use of fighting brands introduced selectively on a temporary basis to discipline or eliminate a competitor.   In a recent example, Air Canada introduced special fares last month matching CanJet's one-way prices of $89 to $99 for travel from Halifax to St. John's, Montreal or Ottawa.   Read More Competing with Amazon: Costco's side of the story. To Kohn, the company is monopsony engaged in "predatory pricing." Amazon can currently purchase a book for $13, for example, and then.   Again, “below-cost” claims in predatory pricing cases generally use AVC (and sometimes marginal cost) as relevant cost measures. Capital Leases Are Mostly for Server Farms. Second, the usual story is that Amazon uses its wildly-profitable Amazon Web Services (AWS) division to subsidize predatory pricing in its retail division.

See Predatory Pricing, supra note 1, Preface. It is true that the United States has a criminal predatory pricing law on its books. The Borah Van Nuys Amendment to the Robinson Patman Act proscribes certain types of predatory pricing behavior. 15 U.S.C. §13a. In September, Wal-Mart was hit with three separate charges of predatory pricing. Government officials in Wisconsin and Germany accused the retailer of pricing goods below cost with an intent to drive competitors out of the market. In Oklahoma, Wal-Mart faces a private lawsuit alleging similar illegal pricing practices. Read More. INTRODUCTION. Predatory pricing poses a dilemma that has perplexed and intrigued the antitrust community for many years. On the one hand, history and economic theory teach that predatory pricing can be an instrument of abuse, but on the other side, price reductions are the hallmark of competition, and the tangible benefit that consumers perhaps most desire from the economic system. One very simple method of finding an approximate value of a book is to search for similar copies on and see what prices are being asked. is an online marketplace for new, used, rare and out-of-print books, and we have millions of secondhand and rare books listed for sale by booksellers around the world.