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To: Chuzzlewit who wrote (46487)	6/5/1998 11:01:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

Chuz, I agree with almost everything you said but am unclear why you used the term "predatory pricing." If CPQ, HWP and IBM hold excessive inventory and reduce prices in order to clear it out, this is not predatory pricing. This is simply the market doing its normal thing to eliminate excess supply. Predatory pricing usually refers to a situation in which a firm deliberately sells below cost with the intent of inflicting harm on a rival. The term has anti- trust implications. A firm which engages in predatory pricing can be prosecuted under the Robinson Patman Act. The old Standard Oil Co was accused of using predatory pricing in the days of John D. Rockefeller as a device to build its monopoly. (although as Rudedog has posted, that appears to have been a myth). You're not really suggesting that CPQ, IBM and HP are guilty of predation, are you? Geoff