predatory pricing

Definition

An anti-competitive measure employed by a dominant company to protect market share from new or existing competitors. Predatory pricing involves temporarily pricing a product low enough to end a competitive threat.

Use predatory pricing in a sentence

Because it makes it difficult for a new business to get started, the practice of predatory pricing by large companies is unfair.

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The predatory pricing strategy was effectively creating an additional barrier to entry so the competition for suppliers was not much.

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Some have accused the large hardware store of predatory pricing after they began to sell their lumber goods at cost following the opening of a new hardware store two miles away from them.

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