By taking a couple of courses in economic theory, we could immunize ourselves from nonsense spouted by politicians and pundits, but in the meantime check out professor John R. Lott’s “Freedomnomics: Why the Free Market Works.” His first chapter is “Are You Being Ripped Off?” It addresses myths about predation where it’s sometimes alleged that corporations will charge below-cost prices to bankrupt their rivals and then charge unconscionable prices. There’s little or no evidence that corporations would choose predation as strategy; there are too many pitfalls. A major one is that in order to recoup losses from charging low prices...
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