> I think what you're observing is that monopolists tend to be more able to use loss-leaders, since their monopoly power gives them the ability to charge a premium on their monopolized good(s), which would increase the scope of profitable loss-leaders. However loss-leading is certainly not a monopoly-only strategy.
It's certainly a scale thing. What's notable about Amazon is they can run a losslead for an entire sector of industry, not just a single product. Note a grocery store could loss lead toilet paper so much no one can afford to produce toilet paper (maybe); but, could you imagine one which could afford to loss lead _all paper products_ to sell more coffee for long enough to wipe out all other paper retailers?
Because amazon can, and is, doing this systematically. And after that we no longer have fair-market prices, because there is no market but amazons for these goods.
It's certainly a scale thing. What's notable about Amazon is they can run a losslead for an entire sector of industry, not just a single product. Note a grocery store could loss lead toilet paper so much no one can afford to produce toilet paper (maybe); but, could you imagine one which could afford to loss lead _all paper products_ to sell more coffee for long enough to wipe out all other paper retailers?
Because amazon can, and is, doing this systematically. And after that we no longer have fair-market prices, because there is no market but amazons for these goods.