What is predatory pricing in business?

[Kera]

I went to a seminar and heard one mention how predatory pricing can be used to the advantage of a business in a competitive industry.

What is predatory pricing? Is it a strategy that any business can use? What are typical examples of predatory pricing?

 

[Fidelia]

Predatory prices is for big businesses. They deliberately reduce prices to loss levels because they can sustain it and force competitors out of business.

 

[Min George]

It is unfair competition for companies to engage in predatory pricing. It is not allowed in some countries because it is difficult for small businesses to compete on that kind of situation.