Difference between revisions of "Predatory pricing"
(Created page with "Predatory pricing is when an existing firm uses sharp but temporary price cuts to discourage new competition. ==Definition== According to Principles of Economics by Tim...") |
|||
| Line 4: | Line 4: | ||
According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
:[[Predatory pricing]]. When an existing firm uses sharp but temporary price cuts to discourage new competition. | :[[Predatory pricing]]. When an existing firm uses sharp but temporary price cuts to discourage new competition. | ||
| + | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| + | :[[Predatory pricing]]. Company deliberately prices below its costs in an effort to drive out competitors and restrict supply and then raises prices rather than enlarge demand. | ||
| − | [[Category: Economics]][[Category: Articles]] | + | [[Category: Economics]][[Category: Articles]][[Category: Accounting]][[Category: Accounting]] |
Latest revision as of 20:57, 10 July 2020
Predatory pricing is when an existing firm uses sharp but temporary price cuts to discourage new competition.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Predatory pricing. When an existing firm uses sharp but temporary price cuts to discourage new competition.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Predatory pricing. Company deliberately prices below its costs in an effort to drive out competitors and restrict supply and then raises prices rather than enlarge demand.
