ABSTRACT
Predatory pricing generally occurs when a dominant firm (or jointly acting firms) charges lower prices that do not cover its operating costs, and in turn makes it difficult for an equally efficient firm to exist in the market. As a result, predatory pricing can be a punitive measure designed to ensure the maintenance of a price floor or an exclusionary measure tailored to ensure that a rival exits the market.1 For these reasons, the practice is regarded as abnormal and devoid of any sense except for its ability to harm competition, with the consequence that, where found, an almost ‘per se’ illegality approach is applied.
