Ikea and Pottery Barn are the only competitors in the low-co…
Ikea and Pottery Barn are the only competitors in the low-cost trendy furniture market. At the beginning of 2013 Ikea announces that they will cut all prices by 25%, significantly below Pottery Barn’s prices. As a result, Pottery Barn quickly begins to lose market share, and realizes that if Ikea does not increase their prices Pottery Barn will go out of business. Pottery Barn brings an antitrust suit against Ikea, alleging that they are engaging in predatory pricing in violation of Section 2 of the Sherman Act. What fact would be most detrimental to Pottery Barn’s case?