Topics
Predatory Pricing
Predatory pricing is the practice of setting prices for goods or services at a level that is below the cost of production, with the intention of driving competitors out of the market. Once the competition is eliminated, the predator can then raise prices to a more profitable level.
Predatory pricing is considered to be anticompetitive behavior and is often illegal. It can be difficult to prove that a company is engaging in predatory pricing, as it requires demonstrating that the company's actions were motivated by the intention to eliminate competition and not by legitimate business considerations.
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Barriers to Entry - A Level and IB Economics
Topic Videos
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Summary of Pricing Behaviour
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Test 10 - Edge in Economics Revision MC: Pricing Strategies
Quizzes & Activities
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Exam Answer: Predatory Pricing
Study Notes
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Imperfect Competition - Key Concept Pairs
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Business Pricing Strategies
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Predatory Pricing and Limit Pricing
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