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Using price as a weapon: An economic and legal analysis of predatory pricing

Predatory pricing is an illegal attempt to destroy competition on a certain area or market by setting low prices. This article seeks to clarify the practices that are considered illegal predatory pricing. Generally, it was found that proving that a certain pricing practice is illegal is difficult; h...

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Bibliographic Details
Published in:Industrial marketing management 1994, Vol.23 (2), p.125-131
Main Authors: Ursic, Michael L., Helgeson, James G.
Format: Article
Language:English
Online Access:Get full text
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Summary:Predatory pricing is an illegal attempt to destroy competition on a certain area or market by setting low prices. This article seeks to clarify the practices that are considered illegal predatory pricing. Generally, it was found that proving that a certain pricing practice is illegal is difficult; however, there are set standards related to cost that the courts usually apply.
ISSN:0019-8501
1873-2062
DOI:10.1016/0019-8501(94)90013-2