“In its most orthodox form, ‘predatory pricing’ refers to a practice of driving rivals out of business by selling at a price below cost. The predator’s intent — and the only intent that can make predatory pricing rational, profit-maximizing behavior — is to charge monopoly prices after rivals have been dispatched or disciplined. Predatory pricing is analyzed under the antitrust laws as illegal monopolization or attempt to monopolize under § 2 of the Sherman Act, or sometimes as a violation of the Clayton Act § 2, generally called the Robinson–Patman Act.” Herbert Hovenkamp, Federal Antitrust Policy 335 (2d ed. 1999).
predatory pricing
predatory pricing. Unlawful below-cost pricing intended to eliminate specific competitors and reduce overall competition; pricing below an appropriate measure of cost for the purpose of eliminating competitors in the short run and reducing competition in the long run. See ANTITRUST. [Cases: Monopolies 17(1.7). C.J.S. Monopolies §§ 83–85, 87.]
