On the Definition of Predatory Pricing

• DOI: 10.1177/0003603X7502000203
• Date: 01 June 1975
• Published date: 01 June 1975
• Author: Roland H. Koller
• Subject Matter: Article

ON

THE

DEFINITION OF

PREDATORY

PRICING

by

RoLAND

H.

KOLLER

II-

In

recent years, anumber of items have

appeared

in the

antitrust

literature

concerning the subject of

predatory

price-

cutting." The

latest

of these,

Professor

Yamey's recent

article in The Journal of Law and Economics," is partieu-

-Assistant Professor of Economics, Brigham Young University.

1See, e.g., Morris A. Adelman, "Geographical Price Differentials,

an Economic Commentary," Ill. Bar Jour. (Mar.

1960),48,

514-528;

John

M. Blair, Economic Ooncentration: Structure, Behavior, and

Policy

(Harcourt

Brace Jovanovich, Inc.,

1972);

Robert C. Brooks,

Jr.,

"Price

Cutting

and

Monopoly Power," Jour. Marketing

(July

1961), 25, 44-49; Donald J. Dewey, "Competitive Policy

and

National

Goals: The Doubtful Relevance of

Antitrust,"

in A. Phillips, Per-

spectives in

Antitrust

Policy (Princeton,

1965);

Donald

J.

Dewey,

The Theory of Imperfect Oompetition: A Radical Reconstruction

(Columbia, 1969); Kenneth G. Elzinga,

"Predatory

Pricing:

The

Case of the Gunpowder Trust," Jour. Law and Econ.

(April

1970),

13, 223-240; Roland H. Koller

II,

Predatory Pricing in a Market

Economy (unpublished doctoral dissertation, Univ. Wisconsin, 1969) ;

Roland H. Koller

II,

"The

Myth of

Predatory

Pricing:

An Em-

pirical Study,"

Antitrust

Law and Econ. Rev. (Summer 1971), 4,

105-123; Wayne A. Leeman, "The Limitations of Local Price Cutting

as a

Barrier

to

Entry,"

Jour. Pol. Econ, (Aug. 1956), 64, 329-334;

Samuel M. Loescher, "Geographical Pricing Policies

and

the Law,"

Jour. Bus.

(July

1954), 27, 211-224;

John

S. McGee,

"Predatory

Price-Cutting: The

Standard

Oil (N.J.) Case," Jour. Law and

Eeon, (Oct. 1958), 1, 137-169; Frederic M. Scherer, Industrial Market

Structure and Economic Performance

(Rand

McNally

and

Com-

pany,

1970);

Lester G. Telser, "Abusive Trade Practices: An Eco-

nomic Analysis," Law and Oontemporary Problems (Summer 1965),

30, 488-505; Lester G. Telser,

"Cutthroat

Competition

and

the Long-

Purse," Jour. Law and Econ. (Oct. 1966), 9, 255-277; Donald

F.

Turner, "Conglomerate Mergers

and

Section 7 of the Clayton Act,"

Harvard Law Rev. (May 1965), 78, 1313-1395; Basil S. Yamey,

"Predatory

Price-Cutting: Notes

and

Comments," Jour. Law and

Econ. (Apr. 1972), 15, 129-142; Richard Zerbe, "The American

Sugar

Refinery Company, 1887-1914: The Story of a Monopoly," Jour.

Law and Econ. (Oct. 1969), 12,339-375.

"Basil S. Yamey, supra note 1.

329