What other sector could take advantage of this strategy?

Netflix and Uber are first movers tho so it doesn't apply to them.

>easily be replicated locally
Have you met the retarded zoomers/boomers that drive uber? They legitimately think the app is magic that replaces a real boss. They can't function without the app or a phone for that matter. Zoomers are fucking retarded especially when it comes to tech. They have no idea that tech stagnated ever since they were born basically, but think it's being upgraded faster than they can think (which is ironically true.)

The labor theory of value is a lie.

Predatory pricing is a socialist meme. It's never been a viable strategy.

>With his new company and new technology, Dow produced bromine very cheaply, and began selling it in the United States for 36 cents per pound. At the time, the German government supported a brominecartel, Bromkonvention, which had a near-monopolyon the supply of bromine, which they sold in the US for 49 cents per pound. The Germans had made it clear that they woulddump the marketwith cheap bromine if Dow attempted to sell his product abroad. In 1904 Dow defied the cartel by beginning to export his bromine at its cheaper price to England. A few months later, an angry Bromkonvention representative visited Dow in his office and reminded him to cease exporting his bromine.

>Unafraid, Dow continued exporting to England and Japan. The German cartel retaliated by dumping the US market with bromine at 15 cents a pound in an effort to put him out of business. Unable to compete with thispredatory pricingin the U.S., Dow instructed his agents to buy up hundreds of thousands of pounds of the German bromine locally at the low price. The Dow company repackaged the bromine and exported it to Europe, selling it even to German companies at 27 cents a pound. The cartel, having expected Dow to go out of business, was unable to comprehend what was driving the enormous demand for bromine in the U.S., and where all the cheap imported bromine dumping their market was coming from. They suspected their own members of violating their price-fixing agreement and selling in Germany below the cartel's fixed cost. The cartel continued to slash prices on their bromine in the U.S., first to 12 cents a pound, and then to 10.5 cents per pound. The cartel finally caught on to Dow's tactic and realized that they could not keep selling below cost. They then increased their prices worldwide.

en.m.wikipedia.org/wiki/Herbert_Henry_Dow

you're an idiot
this is completely irrelevant to the topic

why isn't that free market? this shit is the free market's fault. The alternative is communism and the alternative is looking good

it is on point

>communism
>looking good

Any business with access to tons of VC cash.

It doesn't apply because it's a service not a product those companies sell, but the principle that it's easy to undercut stands.

Netflix is a company not a sector.

the whole point is if their costs are raised too high then someone will just come along and undercut them and the cycle continues

Any sector that allows a monopoly to form.
There is a lesson there.

Utterly irrelevant.

Show me a single example of provable predatory pricing (ie. a monopolist truly selling below cost; not their competitors whining because they're shit and not as efficient of the company they accuse of being a monopoly) working out for a business in the long run.

Standard Oil is a popular but terrible example. They were able to undercut their competitors because they integrated vertically, which allowed them to produce, refine, and transport oil far cheaper than their competitors. They didn't need to sell below cost, they could undercut their competitors and still make a profit because they ran their business that much better and more efficiently.

Rockefeller also heavily invested in R&D to find uses for and monetize byproducts of kerosene production, which was the most common use for oil in the late 19th century. Gasoline was actually one of these "useless" byproducts of kerosene production, and while his competitors were dumping it in rivers, he was finding was to market and sell it. Petroleum jelly (vaseline) is another such product.