Besanko, DavidDoraszelski, UlrichKryukov, Yaroslav2023-05-222023-05-222014-01-012018-05-10https://repository.upenn.edu/handle/20.500.14332/39606We formally characterize predatory pricing in a modern industry-dynamics framework that endogenizes competitive advantage and industry structure. As an illustrative example we focus on learning-by-doing. To disentangle predatory pricing from mere competition for efficiency on a learning curve we decompose the equilibrium pricing condition. We show that forcing firms to ignore the predatory incentives in setting their prices can have a large impact and that this impact stems from eliminating equilibria with predation-like behavior. Along with predation-like behavior, however, a fair amount of competition for the market is eliminated.Originally published in American Economic Review © 2014 by the American Economic Association.Behavioral EconomicsBusinessLabor EconomicsMarketingPublic EconomicsReport