predatory pricing


Also found in: Dictionary, Medical, Wikipedia.

predatory pricing

a PRICING strategy which is aimed at the removal of troublesome competitors. It can take a number of specific forms including selective price cutting on particular brands or selective price cuts in particular sales territories, and the application of a PRICE SQUEEZE by a vertically-integrated supplier on non-integrated rivals. See PRICE WAR, LOSS LEADER, DUMPING, COMPETITION POLICY.

predatory pricing

a pricing policy pursued by a firm (or firms) with the express purpose of harming rival suppliers or exploiting the consumer. Examples of the former include PRICE SQUEEZING and ‘selective’ price cuts to drive competitors out of the market, while exploitation of the consumer comes about through overpricing by MONOPOLY suppliers and CARTELS. See also COMPETITION POLICY.