Predatory pricing

The phenomenon of pricing pressure is not new. Similar periods of predatory pricing develop temporarily during business down cycles and are certainly not unique to engineering. The difference is that the same forces that animate desperate producers during times of recession are now considered the sustaining reality of a hyper economy. As lower pay and prestige continue, the world will suffer the consequences of this narrow mindedness with lower quality, safety and performance outputs. 

Concentration in the industry also raises the specter of monopoly control of a nation s seed supply. Monopoly control is a concern for two reasons the potential for predatory pricing to farmers and ecological vulnerability stemming from overdependence on a narrow set of plant varieties. The discovery of a particularly effective hybrid in a specific crop could lead to widespread adoption. This may threaten national or world supplies if genetic lacunae later contribute to crop failure. The demands of capital in these industries are exerting clear pressure on the public research sector to focus on "upstream" grandparent line development and leave the "downstream" hybrid variety work to the private sector (37). 

Predatory pricing is the cutting of prices to unreasonably low and/or unprofitable levels so as to drive competitors from the market. If this price cutting is successful in driving out competitors, then the price cutter may have acquired a monopoly position via unfair means of competition—a violation of section 2 of the Sherman Act. 

PPA (Pollution Prevention Act), 1164 PPOs (preferred provider organizations), 738 Practice-based team training, 934 Precision forging, 581-583, 1317 Precision mechanics, 365 Predatory pricing, 681 Predetermined time standards (PTS), 1413, 1427-1446... 

The Areeda-Tumer test defines criteria that determine predatory pricing. According to this test, a short run profit maximizing price as well as a price above full costs are non predatory. The test also... 

Reuter P (1989) Introduction to the law of treaties. Pinter Publishers, London and New Yrak, p 16 Rhoades DL, Lush H (1997) A typology of strategic alliances in the airline industry propositions for stability and duration. J Air Transport Manage 3(3) 109-114 Roos HB, Sneek NW (1997) Some remarks on predatory pricing and monopolistic competition in ah hansport. Air Space Law XXII(3) 154... 

There are two classes of Robinson-Patman violations (cf American Bar Association Antitmst Section (1992)). One is termed primary line price discrimination. An example is when manufacturer 1 claims that manufacturer 2 offered discriminatory prices to retailers. For this suit to succeed, manufacturer 1 must prove that it has been harmed and that competition has been injured. This generally entails proving that manufacturer 2 s prices are predatory and below-cost (most courts apply a marginal-cost test). This form of Robinson-Patman violation is not relevant with a single manufacturer. The second class is secondary line price discrimination. An example of this would be retailer 1 suing a manufecturer for giving a lower price to retailer 2. For this suit to succeed, retailer 1 must prove it has been harmed and competition has been injured. The latter can only occur when the retailers compete in the same market. 

Marx, L.M. and G. Shaffer, Predatory Accommodation Below-Cost Pricing Without Exclusion In Intermediate Goods Markets, Rand Journal of Economics, 30, 1 (1999), 22-43. 

Airline travel is under severe stress in the first part of the twenty-first century. This is variously attributed to airport congestion, security issues, rising fuel prices, predatory competition, reduction of route monopolies, and leadership that appears to offer little vision beyond cost cutting. Meanwhile, the demand for air travel is rising all over the world. Global demand for commercial airliners is estimated at nearly 30,000 aircraft through 2030 and is valued at more than 3.2 trillion—in addition to 17,000 business jets valued at more than 300 billion. 

Furthermore, the cost-benefit ratio is for VDW companies an important issue in what is anyway a very predatory competition with low-price machines. This is another reason why a profiling method has been developed in the form of a Farmer Matrix and a two-dimensional Pareto diagram see Figs. 10 and 11 below. 

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