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What are loss leaders? Are they ethical?

Geoff Riley

9th July 2023

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This short looks at some of the arguments surround loss-leading by businesses such as supermarkets. A loss-leader is a pricing strategy where a business sells a product below average cost hoping to attract enough customers to make up the loss through sales of other products.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.