Predatory pricing conspiracy too 'economically irrational' to require a trial: the Matsushita decision

Article Abstract:

The US Supreme Court disregarded hard evidence in Matsushita Electric Industrial Co. v. Zenith Radio Corp. that the lower court found persuasive and relied on economic theories advocated by an academic on the payroll of the alleged predatory pricer. The Supreme Court believed that Matsushita had little incentive to charge below-market, predatory prices in the US market, as Zenith alleged. The Court assumed that, since Matsushita had not begun to wield market power and raise prices in the US, it had not lowered prices in a predatory fashion. In fact, increased capacity had allowed Matsushita to recoup lost profits while still charging predatory prices.

Household audio and video equipment, Audio and Video Equipment Manufacturing, Television Sets, Cases, Laws, regulations and rules, Televisions, Antitrust law, Television equipment industry, Price cutting

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Computer software is a 'natural' monopoly? Predatory pricing and 'efficient scale'

Article Abstract:

This article consists of the author's Internet discussion group comments focusing on the issue of monopoly in the computer software industry.

United States, Analysis, Computer software industry, Software industry, Software, Operating systems (Software), Operating systems, Monopolies

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