Supply is severely limited and there is not really any competition making RAM chips, so it is kind of not a commodity and not a market.
replyBut you are right someone will arbitrage the price, like scalpers selling concert tickets.
Well, that's blatantly false...
replyA well-known anticompetitive tactic is for a big player with a vast bank account to move into an area and eat losses while waiting for their competitors to starve. Well observed in the 90's movie rental market, so certainly real.
The statement further up should have qualified it as "scarce commodity". Then it is correct.
replyTo successfully perform dumping, you have to have access to excess supply capable of disrupting that market.
You don’t lower your prices on the off chance a competitor might enter the market in the future. You wait until they have invested capital but before they start making profits and are at their most vulnerable.
replyI don't think that would work. They wouldn't demolish the competitor's factory when it goes bankrupt. Instead the factory, being an asset, gets sold for cheap, and another company gets a shot at competing while having much lower debts. This process could repeat a few times until the debt is low enough to profitability compete.
replySo if that's the expected outcome, it might be better to prevent competitors from building factories in the first place.
Also why anti-dumping laws exist
replyDo those solve the problem just outlined?
reply(Legitimately asking: I don't know the answer ... but based on most US business law my strong suspicion is ... no, they don't.)
No, because they're hardly enforced. China has been blatantly dumping a buttload of products for decades and the U.S. has been asleep at the wheel as it continues to hollow out our domestic manufacturing industries even further.
replySilicon Valley and other venture backed enterprises also regularly dump into various markets without consequences.
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