predatory pricing strategy
- predatory pricing strategy
1)
The pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market. While it has long been accepted that some firms resort to predatory pricing on occasions, the application of game theory to strategic behaviour has shown that predatory pricing is unlikely to occur very often as it is at least as painful for the predator as for the victim. This encourages most potential predators to look for a more cooperative plan. See also price war
2) An illegal pricing strategy in which a product is offered at a low price to eliminate competition and the price is subsequently raised after the competition has been eliminated.
Big dictionary of business and management.
2014.
Look at other dictionaries:
Predatory pricing — Competition law Basic concepts History of competition law Monopoly Coercive monopoly Natural monopoly … Wikipedia
predatory pricing — noun A strategy of selling a good or service at a very low price so as to drive ones competitors out of business (at which point one can raise ones prices more freely) … Wiktionary
predatory pricing — /prɛdətəri ˈpraɪsɪŋ/ (say preduhtuhree pruysing) noun the deliberate ploy of selling goods or services at an unsustainably low price so as to capture a market from less powerful competitors who could not themselves survive such a strategy …
Pricing strategies — for products or services include the following: Contents 1 Competition based pricing 2 Cost plus pricing 3 Creaming or skimming 4 Limit pricin … Wikipedia
pricing — pric‧ing [ˈpraɪsɪŋ] noun [uncountable] 1. COMMERCE the prices of a company s products or services in relation to each other and in relation to those of their competitors, and the activity of setting them: • Aggressive pricing (= cheaper prices… … Financial and business terms
Predatory lending — describes unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of… … Wikipedia
Penetration pricing — For other pricing strategies and policies please see here: Pricing Strategies Penetration pricing is the pricing technique of setting a relatively low initial entry price, a price that is often lower than the eventual market price. The… … Wikipedia
Dumping (pricing policy) — This article is about the economics term. For industrial relations and social justice issue, see Social dumping. For the tax avoidance term, see SUTA dumping. In economics, dumping is any kind of predatory pricing, especially in the context of… … Wikipedia
category killer — category discounter An exceptionally aggressive off price retailer that offers branded merchandise in clearly defined product categories at heavily discounted prices. Their predatory pricing strategy and ability to decimate much of the… … Big dictionary of business and management
strategic behaviour — The behaviour of firms or individuals that is aimed at influencing the structure of a market In traditional economics, such situations as monopoly or oligopoly were seen as the outcome of technological conditions and the state of demand. More… … Big dictionary of business and management