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Politics : Politics for Pros- moderated
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To: hdl who wrote (516637)10/25/2012 9:26:52 AM
From: LindyBill5 Recommendations  Read Replies (1) of 794015
 
the huge boys sell at a loss to get monopoly power and consumer is denied the better product. then, the big boy doesn't innovate as much and/or raises prices.

I am sorry. This never happens in real time. People sell at a loss to gain future sales. Big, small or medium in size. They find they can never raise their prices afterward because someone comes in and meets their price. If there is a better product out there and people want it, it will find it's way to the market. We have heard this story for years, especially using the "100 mile per gallon" carburetor as an example.

Plus, define "loss." Your loss could be my profit. No way I really know your costs. Many times you don't know what they are yourself.

This concept is a fairy tale told by companies who what to get the Government to restrain trade so that they can compete.
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