Question

What are the 3 things the courts in the U.S. look for to determine whether predatory pricing has occurred?

Answer 1

In order to win over a predatory-pricing argument, the plaintiff must show that

(1) the rates were below a reasonable short-term measure of the defendant's costs,

(2) the defendant had a dangerous probability of raising his investment in lower-cost products.

(3) the plaintiff must show that there is a possibility that the fraudulent scheme allegedly will result in price rises above the reasonable standard which would be sufficient to compensate for the sums expended on predation, including the time value of the money invested therein.