The act of setting a selling price just below the level at which other sellers would find it profitable to enter a market.
Related information about limit pricing:
- Limit price - Wikipedia, the free encyclopedia
The problem with limit pricing as strategic behavior is that once the entrant has entered the market, the quantity used as a threat to deter entry is no longer the ...
- LIMIT PRICING MODELS OF OLIGOPOLY
In limit pricing models a dominant firm maximizes its profits by chosing a price that is low enough to discourage some but perhaps not all entrants into the market.
- Limit Pricing and Entry under Incomplete Information: An ... - JStor
Limit pricing involves charging prices below the monopoly price to make new ... THE BASIC IDEA OF LIMIT PRICING iS that an established firm may be able to ...
- Limit Pricing - AccountingTools
Definition of Limit Pricing. Limit pricing is the practice by a competitor engaging in monopolistic behavior of setting a product or service price at a level just low ...
- What is limit pricing? definition and meaning
Definition of limit pricing: The act of setting a selling price just below the level at which other sellers would find it profitable to enter a market.
- 5 Limit Pricing
61. 5 Limit Pricing. Limit Pricing involves charging prices below the monopoly price ... costs and hence limit pricing may discourage entry by reducing expected ...
- Potential Competition, Limit Pricing, and Price Elevation from
charge, which is why the phenomenon is called limit pricing. ... to enter. Second, the strategy of limit pricing must be economically beneficial to the ...
- Dynamic Limit Pricing
Dynamic Limit Pricing. There are many different models of a dominant firm's behavior when potential competitors enter gradually in response to prices and ...