4 ms·
When it's done to force competitors out of a market it's called predatory pricing [1], and it is not a legitimate business tactic. It is illegal in many jurisdi
by tomtheelder 4y ago
When it's done to force competitors out of a market it's called predatory pricing [1], and it is not a legitimate business tactic. It is illegal in many jurisdictions, and generally considered unethical even where it's not specifically outlawed. It is also considered a strategy to achieve a monopoly or near-monopoly pricing.
[1] https://en.wikipedia.org/wiki/Predatory_pricing https://en.wikipedia.org/wiki/Predatory_pricing
- threeseed 4y agoYou should read the link you posted. That only applies when one of the competitors is effectively a monopoly anyway.
- tomtheelder 4y agoThat's incorrect, and accusing people of not having read something is against the site guidelines. Predatory pricing just needs to be done from a dominant market position, which is absolutely a label that applies to the giant tech firms being discussed. You only need to be in a market position strong enough to wield the pressure needed to force competitors out of market. You absolutely do not need to be effectively a monopoly.