The Economics of Predation: What Drives Pricing When There Is Learning-by-Doing?

• 成果类型: Article
• 署名作者: Besanko, David; Doraszelski, Ulrich; Kryukov, Yaroslav
• 署名单位: Northwestern University; University of Pennsylvania; Carnegie Mellon University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.104.3.868
• 发表日期: 2014
• 页码: 868-897
• 关键词: MARKET DOMINANCE; DYNAMICS; COMPETITION; oligopoly; entry; curve; MODEL

摘要

We formally characterize predatory pricing in a modern industry-dynamics framework that endogenizes competitive advantage and industry structure. As an illustrative example we focus on learning-by-doing. To disentangle predatory pricing from mere competition for efficiency on a learning curve we decompose the equilibrium pricing condition. We show that forcing firms to ignore the predatory incentives in setting their prices can have a large impact and that this impact stems from eliminating equilibria with predation-like behavior. Along with the predation-like behavior, however, a fair amount of competition for the market is eliminated.