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What is Predatory Pricing?

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Question added by padmakumar pathiyil , Marketing Consultant , Management Consultancy
Date Posted: 2014/11/04
Ayyub khan Ibrahim Khan Deshmukh
by Ayyub khan Ibrahim Khan Deshmukh , Finance Manager , Ahmad Al-Sarraf General Trading & Contracting Est.

The act of setting prices low in an attempt to eliminate the competition. Predatory pricing is illegal under anti-trust laws, as it makes markets more vulnerable to a monopoly. Companies may engage in a variety of activities that intend to drive out competitors, such as create barriers to entry for new competitors or unethical production methods to minimize costs.

 

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