Predatory Price

From P2P Foundation
Revision as of 18:39, 25 June 2010 by Ownut (talk | contribs) (Created page with '''In business and economics, predatory pricing is the practice of selling a product or service at a very low Price, intending to drive competitors out of the market, or creat...')
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

In business and economics, predatory pricing is the practice of selling a product or service at a very low Price, intending to drive competitors out of the market, or create Barriers to entry for potential new competitors. If competitors or potential competitors cannot sustain equal or lower prices without losing money, they go out of business or choose not to enter the business. The predatory merchant then has fewer competitors or is even a de facto monopoly, and hypothetically could then raise prices above what the market would otherwise bear. -- http://en.wikipedia.org/wiki/Predatory_pricing