predatory pricing


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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.
References in periodicals archive ?
Remarkably, the Act's predatory pricing prohibition and abuse of dominance concepts are framed on pricing below avoidable cost, yet the Act does not define avoidable costs.
They explained how Chilean authorities had waged what they called a two-year campaign against AeroContinente, how both predatory pricing and money laundering charges had evaporated after costly proceedings, and how, according to them, the safety charges were also trumped up.
The Department of Justice (DOJ) recently sued American Airlines for predatory pricing and predatory expansion of flights on routes to and from its hub at the Dallas-Fort Worth airport.
Most of the concern of late focuses on whether the major network airlines are practicing predatory pricing and thus are discouraging entries of low-cost compe titors.
antitrust doctrine is extremely skeptical about predatory pricing, and federal courts are currently very hostile toward predatory pricing claims.
Reason: What do you think of antidumping laws or predatory pricing laws?
The game theorists created a host of models showing that with certain assumptions about information, strategy, and the structure of the game, a threat to use predatory pricing could, in theory, be profitable.
I personally feel that what Blockbuster is doing is predatory pricing,'' said Alan Kirk, owner of Video Super Shop in Ventura.
IN A FRONT-PAGE story headlined "Attack of the Evil Empire," a South Carolina weekly charges that its Knight Ridder competitor is engaged in a predatory pricing scheme designed to force the smaller paper out of business.
When the monopoly position is achieved, it is said that output is restricted and prices increase; government intervention is supposedly needed to prevent the so called negative effects of predatory pricing.
The regulatory body has previously stated that it did not deem Reliance Jio's introductory Welcome offer as a breach of predatory pricing norms.
ISLAMABAD -- The Competition Commission of Pakistan (CCP) has issued a show cause notice to JCR-VIS Credit Rating Company for prima facie predatory pricing in the bidding for rating assignment of Sukuk issue of Rs 100 billion by Neelum Jhelum Hydropower Company (Private) Limited (NJHPC).