Wow. I couldn't find anything either. Then again, I first learned about it in an economics book in the 90s ... and I think that book was from the 70s.
Price bashing is when a competitor lowers prices to the point where they are losing money on the transaction. The desired effect is to destroy the competition and once the competition is eliminated, to raise prices to an artificially high level as a monopolist.
There is little empirical support that predatory pricing happens. The criticism section of the Wikipedia article makes some strong arguments in this vein. The support section contains 3 "citation needed"'s.
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I looked up price bashing (using Google, haha) and didn't get satisfactory results. Can you provide a link that gives a good explanation?
Wow. I couldn't find anything either. Then again, I first learned about it in an economics book in the 90s ... and I think that book was from the 70s.
Price bashing is when a competitor lowers prices to the point where they are losing money on the transaction. The desired effect is to destroy the competition and once the competition is eliminated, to raise prices to an artificially high level as a monopolist.
EDIT: Found it - http://en.wikipedia.org/wiki/Predatory_pricing
There is little empirical support that predatory pricing happens. The criticism section of the Wikipedia article makes some strong arguments in this vein. The support section contains 3 "citation needed"'s.
>Then again, I first learned about it in an economics book in the 90s ... and I think that book was from the 70s.
Well that explains why you have such an average grasp of the concept.
http://en.wikipedia.org/wiki/Dumping_(pricing_policy) maybe this is what he meant