Predatory pricing - Revision history

Vipul at 15:33, 15 November 2009

2009-11-15T15:33:02Z

← Older revision		Revision as of 15:33, 15 November 2009
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	In the United States, predatory pricing is illegal under Section 2 of the [[Sherman Antitrust Act]] and the [[Robinson-Patman Act]].		In the United States, predatory pricing is illegal under Section 2 of the [[Sherman Antitrust Act]] and the [[Robinson-Patman Act]].

			==References==

			===Online encyclopedia/dictionary references===

			* [[Wikipedia:Predatory pricing\|The Wikipedia entry on predatory pricing]]

			===Weblog entries/articles===

			* {{econlibsearch\|"predatory+pricing"}}
			* {{marginalrevolutionsearch\|"predatory+pricing"}}

Vipul at 20:38, 21 March 2009

2009-03-21T20:38:03Z

← Older revision		Revision as of 20:38, 21 March 2009
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	==Relation with other pricing strategies===		==Relation with other pricing strategies===

			===Forms or variants of predatory pricing===

			* [[Penetration pricing]]: A variant of predatory pricing where a low initial price is chosen in order to achieve scale.
			* [[Experience curve pricing]]

			===Other exploitative strategies===
	* [[Price gouging]]		* [[Price gouging]]
	* [[Dumping]]		* [[Dumping]]

Vipul at 20:31, 21 March 2009

2009-03-21T20:31:58Z

← Older revision		Revision as of 20:31, 21 March 2009
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	Often, low prices that appear to be predatory are due to lower costs of production. These lower costs may be a consequence of economies of scale or different production costs (for instance, greater productivity, superior technology, different costs of labor and capital, different tax rates, different costs of regulatory compliance)		Often, low prices that appear to be predatory are due to lower costs of production. These lower costs may be a consequence of economies of scale or different production costs (for instance, greater productivity, superior technology, different costs of labor and capital, different tax rates, different costs of regulatory compliance)

			==Relation with other pricing strategies===

			* [[Price gouging]]
			* [[Dumping]]

			==Legal regulation of this strategy==

			===In the United States===

			In the United States, predatory pricing is illegal under Section 2 of the [[Sherman Antitrust Act]] and the [[Robinson-Patman Act]].

Vipul: Created page with '{{pricing strategy}} ==Definition== '''Predatory pricing''' refers to a strategy whereby a producer/seller with more capital and the ability to take a short-term loss sells a g...'

2009-03-21T20:22:32Z

Created page with '{{pricing strategy}} ==Definition== '''Predatory pricing''' refers to a strategy whereby a producer/seller with more capital and the ability to take a short-term loss sells a g...'

New page

{{pricing strategy}}

==Definition==

'''Predatory pricing''' refers to a strategy whereby a producer/seller with more capital and the ability to take a short-term loss sells a good at a significantly reduced price (thus incurring a loss) in order to drive competition out of the market, and with the aim of increasing prices eventually once the competition is out of the market.

==Alternatives to apparent predatory pricing==

There is little economic evidence for predatory pricing as a successful economic strategy. Often, what appears to be predatory pricing is something different. Further, even in cases where low prices drive competition out, raising prices is often difficult, because in the absence of significant [[barrier to entry|barriers to entry]], new competitors can always emerge to squeeze prices down again.

===Lower prices due to significantly lower costs===

Often, low prices that appear to be predatory are due to lower costs of production. These lower costs may be a consequence of economies of scale or different production costs (for instance, greater productivity, superior technology, different costs of labor and capital, different tax rates, different costs of regulatory compliance)