Predatory Pricing is a pricing strategy in which a product or service is set at a very low price with the intention to achieve new customers or eliminate the competitions so that the supplier can charge considerably higher prices later. In the advanced economies, there are legal restrictions regarding the Predatory Pricing. Depending on the circumstances and the country where the price war takes place, the predator could be deemed anti-competitive.
Related Definitions in the Project: The Commercial Definitions
