The other day, I wrote on predatory pricing (“dumping”) in the international trade market. At Cafe Hayek, Don Boudreaux has additional comments. Don writes:
There are many reasons to ignore allegations that private firms use so-called “predatory pricing” today as a means of monopolizing markets tomorrow – not the least of which is that there is no credible historical evidence of any such scheme ever actually being used to achieve genuine monopoly power for an alleged practitioner. (By “genuine monopoly power” I mean the power of a firm to make consumers worse off than consumers were before the alleged predatory-pricing scheme resulted in the alleged monopoly power.)
Why is it genuine monopoly power is so unobtainable by a predatory pricer (for the sake of discussion, I am going to use the term “predatory pricing” both for domestic would-be monopolists and international “dumpers”)? Here we must turn to…
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Utopia, you are standing in it! 
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