What is Predator pricing?

Answer 1

Predatory pricing is a strategy where a company sets its prices extremely low, often below cost, to drive competitors out of the market or deter new entrants. Once competition is eliminated or reduced, the company can then raise prices to recoup losses and increase profits. This practice is considered anti-competitive and is illegal in many jurisdictions as it can harm consumers and undermine fair market competition. Regulatory bodies often monitor pricing strategies to prevent such practices.