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Here’s something you see every day: An idiot, anti-freedom lawsuit. But here’s something you don’t see every day: A newspaper with a clue about economics.
The theory behind predatory pricing laws is that a large company will sell certain products below cost in order to drive out competitors. Once the competitors are gone, goes the hypothesis, the big company will jack up prices to a monopoly level.
The only problem is, this never happens. New competitors always move fast into markets where prices are unjustifiably high. Predatory-pricing suits are generally filed by existing companies unable or unwilling to meet competition provided by more efficient firms. Legal restrictions on cutting prices invariably work against the consumer.
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