The marginal price effects of antitrust rules against price discrimination
H Zenger - Economics Letters, 2012 - Elsevier
The two central pricing rules contained in most antitrust laws are prohibitions of below-cost
pricing and prohibitions of discriminatory pricing. This article shows that the rule against
discriminatory pricing may actually induce firms to charge exclusionary below-cost prices,
even in the complete absence of any predatory intent on the part of firms.
pricing and prohibitions of discriminatory pricing. This article shows that the rule against
discriminatory pricing may actually induce firms to charge exclusionary below-cost prices,
even in the complete absence of any predatory intent on the part of firms.
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