predatory pricing

predatory pricing definition - business

predatory pricing

Temporarily charging very low prices, often below cost, in an attempt to drive competitors out of a market. Predatory pricing is generally practiced by large businesses that can afford to lose money on a particular product or group of products at the same time its competitors cannot. While predatory pricing is illegal, it is generally difficult to prove that it is not merely a result of aggressive competition.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments (1) Add Your Comment

Is predatory pricing and loss-leader pricing the same thing?

Posted by anonymous 86 days ago.

Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.