Good question, was on my mind too. The problem I could see is Walmart style - the predator will beat the prices of the non-predator down until the non-predator goes out of business, then raise their prices again.

They can do this because they are operating in other areas with predatory prices, giving them the ability to operate at a loss, and relying on the fact that at least some of those areas are not being challenged by non-predators.

Everybody seems to be playing the game right in this scenario. Interesting to try to come up with a good counter.