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Home > Terms > Armenian (HY) > միտումնավոր գների իջեցում
միտումնավոր գների իջեցում
Charging low prices now so you can charge much higher prices later. The predator charges so little that it may sustain losses over a period of time, in the hope that its rivals will be driven out of business. Clearly, this strategy makes sense only if the predatory firm is able eventually to establish a monopoly. Some advocates of anti-dumping policies say that cheap imports are examples of predatory pricing. In practice, the evidence gives little support for this view. Indeed, in general, predatory pricing is quite rare. It is certainly much less common in practice than it might appear from the propaganda of firms that are under pricing pressure from more efficient competitors.
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