Predatory prices. Pricing designed to annihilate competitors

• Authors: Erdelyi M.
• Languages of publication: HU

Abstracts

EN

The article presents predatory pricing as anti-competitive behaviour. It describes theories of pricing below cost, from the inception of the concept to the present day, that are decisive to economic assessment of it. The Chicago School questions the rationalism of predatory pricing; Areeda and Turner approached the problem on the basis of short-term average changing costs, but others analysed the long-term effects of predatory pricing. A game-theory approach placed predatory pricing in another light, as entirely rational behaviour under certain conditions, while recent and present-day theories have used newer methods to present predatory pricing. The article also mentions the circumstances that can legitimize this otherwise damaging behaviour. Since selling at under cost is the subject of debate today, it is important to analyse when it poses a danger to welfare, according to the theories.

Keywords

EN

ANTI-COMPETITIVE BEHAVIOUR; COMPETITION; PREDATORY PRICING

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2006
• Volume: 53
• Issue: 4
• Pages: 365-379
• Document type: ARTICLE

Contributors

author

Erdelyi M.

• M. Erdelyi, no address given, contact the journal editor

Identifiers

CEJSH db identifier

07HUAAAA02986086