Keith Hylton, Sep 01, 2005
Perhaps no area of antitrust law provokes as much controversy as predatory pricing, the theory that a firm violates the antitrust laws by setting its price too low. Under the standard definition, predatory pricing involves a strategy of cutting price below the level at which a competitor can survive in the market and then raising price to the monopoly level in a later stage known as recoupment period.
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