What do you mean by Predatory Prices in HMO industry?

Question

HMO Price behavior particularly in the Philippine context.

Answer 1

Concept is the same no matter where it occurs:

Predatory Pricing Elements

The court’s decision pointed out that a plaintiff

alleging a claim of attempted monopolization by

predatory pricing must prove four elements:

1. A relevant geographic and product market;

2. Specific intent to monopolize the market;

3. Anti-competitive conduct in furtherance of the

attempt; and

4. A dangerous probability that the defendants

will succeed in this attempt.

Specific Intent

With regard to specific intent, the court found that

the internal documents of the defendants, prepared

before the litigation and contemporaneous with the

bid, did not suggest a conscious design to price

below cost to acquire monopoly power. Rather,

Preferred bid based on a price it anticipated would

cover anticipated variable costs.