PREDATORY PRICING IN CANADA: THE LAW AND THE ECONOMICS
AbstractThis article discusses the emerging Canadian jurisprudence on predatory pricing in the light of a number of economic theories of predation which , have been suggested in the recent academic literature. The article begins with an analysis of the three leading Canadian predatory pricing cases. Economic theories relating to predation and the social control of it are then discussed. Tests for predatory behaviour which have been derived from this body of theory are applied both to the leading Canadian cases and in the interpretation of the existing Canadian legislation. Alternative directions for reform, including both the elimination and the broadening of the predation offence, are also considered.
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