Comment Not Quite (Score 1) 850
Price fixing can be used to drive prices down as well. Think of it this way, if prices are driven down below an acceptable profit margin, then businesses will be driven out of a particular market. Thus, if a firm can hold out long enough (i.e. sustain the lost), all of it's competitors will be driven bankrupt or leave the market. And what you are left with is a monopoly.
Classic antitrust doctrine. Vanderbilt used this strategy a bunch in the 19th century (drove out shipping competitors first, then used the tactic to drive out RR competitors). Look up the terms "predatory pricing" and "raising rival's costs" - allegations in the MS antitrust trial.
Of the various weaknesses to pick at in this suit, the inappropriate use of the term "price fixing" is not one of them.
Classic antitrust doctrine. Vanderbilt used this strategy a bunch in the 19th century (drove out shipping competitors first, then used the tactic to drive out RR competitors). Look up the terms "predatory pricing" and "raising rival's costs" - allegations in the MS antitrust trial.
Of the various weaknesses to pick at in this suit, the inappropriate use of the term "price fixing" is not one of them.
