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Predatory pricing

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Updated: Aug 20, 2021

A policy of setting prices the purpose of which is to weaken or eliminate competitors or to discourage and prevent entry of new seilers into a market. It is therefore a means by which monopoly power may be built up or preserved, and for this reason has aften been criticized by economists.

Reference: The Penguin Dictionary of Economics, 3rd edt.


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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.