predatory pricing
Undercut until bankrupt
Predatory pricing is the practice of setting prices artificially low to drive competitors out of business, with the intention of raising prices once competition has been eliminated.
The strategy requires deep pockets to absorb short-term losses.
It's illegal under antitrust law but notoriously difficult to prove, since aggressive price competition is generally encouraged: The startup accused the industry giant of predatory pricing.
- price fixingIllegal coordinated rate-setting
- collusionFraudulent secret cooperation
- Clayton ActFederal antitrust statute
- monopolyOne seller, no substitutes
- barrier to entryCompetitive impediment for newcomers
deep pockets · unfair advantage · cartel · dumping · price war · antitrust · dominant position · recoupment · price discrimination · gouging · undercutting · loss leader · anti-competitive · competitors · market share · crushing · market manipulation · cutthroat
- pricingdiscount price, overpricing, discounts, overcharge, markdowns
- market economicsmonopoly, oligopoly, perfect competition, duopoly, monopsony
- economic problemsmarket failure, recession, inflation, deflation, stagflation
- exploitationexploit, sex trafficking, take advantage, human trafficking, prey on
- price crimesprice fixing, price gouging, price manipulation, price discrimination, overcharging
- undercuttinglowballing, underbidding, price wars, dumping, loss leader
predatory pricingprice gouging
Excessive pricing during crises
premium pricing · overcharging · profiteering · skimming · profit maximization