David, Besanko; Ulrich, Doraszelski; Yaroslav, Kryukov - Carnegie Mellon University, Tepper School of Business - 2013
To detect the presence of predatory pricing, antitrust authorities routinely ask whether a firm sacrifices current profit in exchange for the expectation of higher future profit following the exit of its rival. Because predatory pricing is an inherently dynamic phenomenon, we show in this paper...