I agree with some of your analysis. Note though, as far as my reading in the lit... | Hacker News

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tomrod on Nov 4, 2012 | parent | context | favorite | on: Linus Torvalds: Is Engadget really that stupid? Ju...

I agree with some of your analysis. Note though, as far as my reading in the literature on this subject, empirically predatory pricing hasn't been viable in the long run. *I'm a PhD candidate studying this very topic.

davidw on Nov 4, 2012 [–]

Very interesting; do you have some kind of summary/ survey of the literature on that?

Predatory pricing seems "intuitive", it'd be interesting to read about the conditions that make it not work.

tomrod on Nov 4, 2012 | [–]

This is a fairly solid overview: http://works.bepress.com/aaron_edlin/74/

Basically what falls apart is that once the predation period is over, the predator can't block other firms from entering.

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