Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Alberta's Child
If Airbus wins the market, and drives US competitors out of business, they are then the only game in town. A monopoly. They can then name their own price and recover, massively, their earlier losses. And since their governments are still committed to them, they can undersell and muscle out any new competition that may come along.
235 posted on 07/29/2003 6:17:27 AM PDT by Cacophonous
[ Post Reply | Private Reply | To 233 | View Replies ]


To: Cacophonous
If Airbus wins the market, and drives US competitors out of business, they are then the only game in town. A monopoly. They can then name their own price and recover, massively, their earlier losses.

It is my understanding that this is a common fallacy in economics. Most economists will tell you that they can't think of a single case in which this kind of strategy has worked successfully. Companies that engage in this kind of predatory practice never make up for all the losses they incur.

245 posted on 07/29/2003 6:28:38 AM PDT by Alberta's Child
[ Post Reply | Private Reply | To 235 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson