predatory pricing

USAGE SUMMARY

"predatory pricing" is correct and usable in written English.
You can use it to refer to when a company intentionally sets prices too low in order to drive competitors out of business. For example: "In an effort to dominate the market, the company engaged in predatory pricing, setting prices that were far too low for their competitors to sustain."

✓ Grammatically correct

News & Media

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

50 human-written examples

Why does predatory pricing matter?

Independent

His carrier went bust but he subsequently sued his rivals for predatory pricing, and won.

The Economist

Energy watchdog Ofgem has already launched an investigation into accusations that such predatory pricing is rife.

Independent

Starting in 1994, the American government successfully prosecuted Microsoft for predatory pricing and undermining competition.

The Economist

Only when the creditors sued did the airlines plead guilty to predatory pricing.

The Economist

Intel rejects the charge of predatory pricing and plans a court appeal.

The Economist

But the argument that this constitutes "predatory pricing" is dubious at best.

The New Yorker

At the Liberal Democrat party conference in September he attacked firms for "predatory pricing".

The Economist

It was the first so-called predatory pricing case since the airlines were deregulated.

The New York Times

Economic advisers to President Bush have been critical, for instance, of predatory pricing cases.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

1 human-written examples

But for American Airlines at least, the review is not well timed because the company is preparing for a major predatory- pricing trial.

The New York Times

Expert writing Tips

Best practice

When discussing business ethics or legal issues, use "predatory pricing" to specifically denote the anti-competitive practice of setting prices below cost to eliminate competition.

Common error

Avoid assuming that any low price constitutes "predatory pricing". It requires demonstrating intent to eliminate competitors, not just offering competitive deals.

Linguistic Context

The phrase "predatory pricing" functions as a noun phrase, typically used as a subject or object in sentences. Ludwig AI confirms its correct usage. It describes a specific business strategy or illegal action.

Expression frequency: Very common

Frequent in

News & Media

40%

Formal & Business

30%

Encyclopedias

10%

Less common in

Wiki

5%

Science

5%

Academia

5%

Ludwig's WRAP-UP

In summary, "predatory pricing" is a commonly used phrase that describes a controversial and potentially illegal business practice. As Ludwig AI confirms, it refers to the strategy of setting prices below cost to eliminate competition with the intention of creating a monopoly. It's most frequently found in news, business, and legal contexts and should be used with care to accurately reflect the intent and circumstances. While related terms like "aggressive pricing strategy" or "anti-competitive pricing" exist, they do not always capture the specific intent inherent in "predatory pricing".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cutthroat pricing

Implies ruthless competition through price reductions.

anti-competitive pricing

Highlights the negative impact on market competition.

aggressive pricing strategy

Focuses on the intensity of the pricing approach.

below-cost selling

Emphasizes selling products for less than their production cost.

price dumping

Implies selling at very low prices, often internationally.

unfair pricing practices

Broader term encompassing unethical pricing behaviors.

market undermining pricing

Highlights the action of destabilizing the market through pricing.

destructive pricing tactics

Emphasizes the damaging effects of the pricing approach.

loss-leader strategy

Refers to pricing a product below cost to attract customers.

price war

Describes a situation where companies aggressively lower prices.

FAQs

How is "predatory pricing" defined in business?

"Predatory pricing" involves setting prices so low that competitors can't compete, with the intention of driving them out of business and then raising prices once a monopoly is established.

What are some strategies similar to "predatory pricing"?

Similar strategies include "aggressive pricing strategy" and "anti-competitive pricing", but they may not always have the same intent to eliminate competition.

Is "predatory pricing" illegal?

Yes, "predatory pricing" can be illegal under antitrust laws if it can be proven that the company intended to create a monopoly and harm consumers in the long run.

What's the difference between "predatory pricing" and simply offering discounts?

"Predatory pricing" aims to eliminate competition, while discounts are generally offered to attract customers and increase sales without the intention of harming competitors.