The United States, however, has not been so careful, letting the Chinese using predatory pricing to make American mines uncompetitive.

FORBES: China's New Economic Warfare

Predatory pricing by health insurance companies is OK. These practices normally illegal under federal anti-trust regulation are protected by law.

FORBES: Congressman Ryan, Should Predatory Pricing Cartels Really Run Health Care?

Mr Lott examines companies that have been sued for predatory pricing, comparing those that were sued successfully with the others, and also with benchmarks for similar firms that were not sued at all.

ECONOMIST: Preying on theory

As Mr Lott says, a chief strand of the game-theory account of predatory pricing relies on the idea that incumbent firms have an advantage over would-be entrants they know more, especially about their own costs, than newcomers do.

ECONOMIST: Preying on theory

But predatory pricing is an unconvincing excuse.

ECONOMIST: Unfair protection | The

Under your plan, instead of receiving Medicare benefits when I am old and frail should I expect to figure out how to purchase insurance from a cartel of companies that are protected by the Federal government and allowed to collude on predatory pricing schemes?

FORBES: Congressman Ryan, Should Predatory Pricing Cartels Really Run Health Care?

As in cases of predatory pricing, when a big firm slashes prices to unprofitable levels in the hope of recouping its losses and more once weaker rivals are driven from the market, revenue is sacrificed in the short run in the hope of dividends later.

ECONOMIST: Pay TV and football