Essays on Predatory Pricing

Price competition is the core element of a free-market economy. Firms and organizations have been engaging each other in pricing behaviors like price fixing, price collusion, predatory pricing, deceptive price advertising, price confusion, resale price maintenance, and price discrimination amongst others (Grewal, and Compeau 3). These practices concerning pricing have a great impact on the public welfare. As a result, the government has taken the position of implementing legislation and judicial policies that aim at regulating the price behaviors in organizations. Other agencies that monitor pricing include the federal and local government. According to Grewal, and Compeau (3), the ...

Introduction

Flipkart is an e-commerce company which was founded on 5th September in 2007 by Binny Bansal and Sachin Bansal. The firm is headquartered in Bangalore, India and employs approximately 33,000 people. The firm was started with an initial investment of INR 4 lakh or $6,000. In a manner of few years, the Flipkart business model became a successful one and transformed the form into one of India’s most successful and prosperous e-commerce firm. Flipkart was initially launched as a simple website to be used for price comparison, but then it took the shape of an e-commerce ...

Abstract

This case presents a classic duopoly situation. Two shipping firms are in the midst of a price war over the market of containerized shipping to and from a small Caribbean Island. The case presents a table of contributions to both firms, which depend on their respective prices. The tables of contribution serve as a major basis by the concepts of price leadership; prisoner’s dilemma and Nash equilibrium are explored. The main issues addressed in the case include competitive dynamics, international case, game theory, pricing, pricing leadership, and diversity case. The setting of the case is the transportation sector. ...

1. “A firm would prefer to be a monopoly, rather than be involved in a perfectly competitive market.” Discuss. Every student attending economics class knows that perfect competition is ideal for any market, while monopoly is the worst possible situation due to a number of reasons. But at the same time, it is a well-known fact that since ancient times firms have strived to gain the status of monopoly. Why is it so? The matter lies in people’s nature – monopoly offers to a firm great power and control over market and requires practically no effort to get considerable income. At the same ...

Introduction.

This essay looks at the theory of predation and recoupment in business and market analysis. The essay makes a preview of existing legislature on predation and recoupment practices and its efficiency. They also analyzes various cases of alleged predatory practices and the outcome of these cases, benefits accrued, damaged caused and the court ruling if any. (Bolton et.al.2006)From the discussion, I drew findings, which try to identify and vindicate the type of market that the practice is common or is possibly practiced. I also give a critique on the matter and finally outlines the recommendation in the conclusion.

Methodology.

The theory ...