competitor that has set supracompetitive price. Secondly, with the possibility of new entrants, dominant companies are forced to lower the prices of their products and services in order to keep their dominant market position. In cases where there are no significant barriers to enter the market present, dominant companies will refrain from setting supracompetitive prices, at least in the long run. • Price control lessens incentives for investment. Temporary high prices are present and important in the dynamic markets. Firms invest and gain profits for risky investments when supracompetitive prices are present. Price regulation and state intervention can thus discourage potential investments since the rewards are lower in less risky environment. • Supracompetitive prices are difficult to assess. Dominant companies charge for their products and services the prices that are higher than the marginal cost. The question that it is necessary to answer is when the price is too high. There are two main criteria that need to be taken into consideration while deciding if the prices are supracompetitive. First is determining if the price poses a threat to survival of an efficient competitor. Second is determining is the price has a legitimate business justification (Baumol, 2003). • There is no appropriate regulation to remedy supracompetitive prices. Authorities can find that some companies set supracompetitive prices that undermine the customer welfare and present a threat of survival to competing companies. In those cases authorities can fine the company setting supracompetitive prices in order to stop excessive charging. But these types of activities can be implemented periodically and in the end don’t represent the long-term solution for the problem of supracompetitive pricing. Reactions Even though there are multiple reasons against regulation of supracompetitive prices and the traditional predation model is considered to be irrational and inefficient, there are a few conditions that need to be satisfied for this marketing strategy to be considered rational and acceptable. Those primarily include the presence of predatory company in multiple markets with multiple products and services, information distribution where possible new entrants and existing competition don’t recognize the signs of predatory strategy and presence of market conditions and entry barriers that enable supracompetitive pricing . Claims of predation and supracompetitive pricing are not uncommon in dynamic market, but in many cases those are just attempts of the competitors to raise their rivals’ cost . The antitrust laws are concerned with the task of distinguishing competitive