Aaron S. Edlin
Predatory Pricing: Limiting Brooke Groupe to Monopolies and Sound Implementation of Price-Cost Comparison
Responding to C. Scott Hemphill and Philip Weiser’s feature on Brooke Group predatory pricing, Edlin argues that in monopoly cases the greatest competitive danger likely results from above-cost pricing and that the Brooke Group safe harbor for above-cost pricing should not extend to monopolies.
111 Yale L.J. 941 (2002)
This Essay has refocused the predatory pricing debate on ex ante incentives--i.e., the incentives for entry and limit pricing before the predatory period--instead of the traditional focus of high prices after the predatory period. Ideally, a monopoly incumbent should price re…