Extinction Pricing

Extinction Pricing

A pricing strategy in which a company attempts to drive its competition out of business by setting its prices significantly lower. This can even involve selling products at a loss for a period of time. A company can engage in extinction pricing if it already has large market share and wishes to expand it or if it can make up the losses in some other way (for example, by increasing prices for other products). See also: Loss leader, Monopoly.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved