Predatory Pricing - Economics and Law in the United States and the European Union (in Chinese)

Fa Xue Jia, pp. 100-110, 2009

11 Pages Posted: 8 Dec 2009 Last revised: 20 Apr 2010

Date Written: December 8, 2009

Abstract

Predatory pricing occurs where a firm deliberately sets prices below cost to eliminate, discipline or deter entry by a competitor, with the goal to subsequently recoup its losses by charging supra-competitive prices.

China’s Anti-Monopoly Law, Anti-Unfair Competition Law and Price Law contain prohibitions of predatory pricing, but their provisions do not go into much detail. Given the relative scarcity of guidance on predatory pricing in China, this paper examines the solutions proposed by economists, antitrust agencies and courts in the United States and the European Union. The paper analyzes many traditional and more modern economic theories, including the findings of the Chicago School and and the theories and models before and after the Chicago School. Moreover, the authors decribe the U.S. case law on predatory pricing, including Matsushita and Brooke Group, and the EU case law, ranging from AKZO to Wanadoo.

The English translation of the article is available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1567537.

Note: Downloadable document is in Chinese.

Keywords: Antitrust, competition law, law and economics, industrial policy, predatory pricing, abuse of dominance, China

Suggested Citation

Leonard, Gregory K. and Emch, Adrian, Predatory Pricing - Economics and Law in the United States and the European Union (in Chinese) (December 8, 2009). Fa Xue Jia, pp. 100-110, 2009, Available at SSRN: https://ssrn.com/abstract=1520308

Gregory K. Leonard

Charles River Associates ( email )

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