Predatory bidding
Contents
Place in the Framework
Predatory bidding concerns overpaying for inputs to drive rivals from input or output markets, followed by recoupment through monopsony or monopoly power.
Core Questions
- Did the defendant bid input prices to a predatory level?
- Did the bidding cause below-cost output pricing or exclusionary input-market effects?
- Is there a dangerous probability of recoupment?
Working Notes
Add notes here on the relationship between predatory bidding, monopsony power, and the predatory pricing framework.