A Study On The Legal Regulation Of Predatory Pricing

Predatory Pricing is one kind of exclusionary behaviors. In the short term, the predatory pricing not only hurt rivals interest, in the long run, and also will cause damage to the interests of consumers and the destruction of the order of market competition. In China, only the Anti-unfair Competition Act, the Price Law, the Anti-monopoly law and some municipal rules stipulate predatory pricing. It's extremely difficult to put these clauses into effect because of the shortness of law. This paper analyses the criterion of cost from The Nomo Logy and The Economics of The Law of predatory pricing, and reveals that predatory pricing is irresistible, and depicts the legal system on the basis of economical knowledge and legal theory.The first part, Combining with the predatory pricing define and the various domestic scholars of The United States and The European Union, this paper definite the predatory pricing. Based on these basic concepts, this paper make the essential characteristic of the predatory pricing are five aspects, like the dominance of the market subjects,with the intention of preventing competitors subjectively,implemented irrational low sales Objectively,caused serious damage to the competition,the possibility of latter-day compensation and so on. And from behavior corpus, scope and standards on aspects of predatory pricing and dumping, price discrimination distinguish between such behaviors. Based on these basic concepts, the paper makes a general framework about predatory pricing in the first part.The second part, I make the economic analysis of predatory pricing. This part analyzes the relations among predatory pricing, the self-pricing right, the competition of price and monopoly from the review of economy. And the different opinions of three major academic groups about whether predatory pricing should be preserved or abolished will also be reviewed. In the end of this part, using the three new economic models analysis of predatory pricing, concludes that the predatory pricing is operator rational strategic behavior conclusion when the information is not fully premise.The third part , This paper analyzed the predatory pricing laws, including four sorts of content: the first from civil law Angle and economic law Angle are analyzed the nature of predatory pricing. The author thinks that, from the perspective of civil law, predatory pricing is tort. From the economic perspective, predatory pricing is an infringement behavior of social benefit. Secondly, based on the legal nature of predatory pricing predatory pricing pointed out that distort the market price mechanism, caused the loss of social welfare and violated the legitimate rights and interests of consumers. Again, to practice common three determination standards are analyzed. In the end of this part, the author gives some counterarguments, including four defense causes which Anti-unfair competition Act states.The forth part, Based on the previous case EU review and summarize laws of the European Union, the European Union in interpretation of predatory pricing, it is concluded that the basic legal framework, field of the framework to analyze problems.The fifth part, I analyze special characters about how to regulate the predatory pricing in Chinese. And I point out the shortages. In the end of this part, I give some advices about how to accomplish the regulation of predatory pricing.