| 释义 |
limit pricing A policy for an incumbent firm of discouraging entry to its markets by charging low enough prices for entry to appear unprofitable to other firms. This is contrasted with a policy of short-run profit maximization, where the price is high enough to attract entry, which will lead to a gradual loss of sales, as customers come to know of alternative suppliers. There is thus a trade-off between large but temporary and smaller but more sustained profits. |