Allegations of this activity can be difficult to pursue, since defendants may legitimately claim that price reductions are a natural part of the competition, not a purposeful attempt to undermine the marketplace. Predatory pricing breaches antitrust rules by increasing the vulnerability of markets to monopolization. Predatory pricing is the unlawful practice of intentionally lowering prices to remove competition. In this article, we define predatory pricing, explain its effects, learn why it's difficult to sustain, explain a pricing strategy, list different types, and discover how to choose a strategy. Learning what predatory pricing is can help you understand how it affects markets and how to handle it. Some companies may decide to price their products very low to attract more customers and drive out the competition. Pricing products is a very essential aspect of business operation.
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