Predatory Price Cutting: Notes and Comments

Sep 01, 2005

In this article, Professor Yamey reviews the post-war contributions to the literature and analysis of predatory price cutting. While the point has been made frequently in the literature on predatory pricing that the practice makes little sense where entry into the industry in question is easy, the author gives several examples that illustrate how temporary price cutting may operate as an effective hindrance to new entry.

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• Yamey (Sep. 2005)