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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 251.48-0.2%2:25 PM EST
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To: Elmer Phud who wrote (218862)12/5/2006 1:12:08 AM
From: muzosiRead Replies (1) of 275872
 
my mistake; i thought you were capable enough to do your own search. i'm hesitant to give it here as it may necessitate you to admit your ignorance but here is a definition i could use. now there is no reason for you to ignore my post about your comprehension problems. will you know claim that intel is the weak competitor? poor poor, saintly intel?

Predatory pricing through sharp discounting is not beneficial to a business in the short run, as it may result in a price war and will cause loss of revenue and/or profits. Yet businesses may engage in predatory pricing because it may pay dividends in the long run.

This is because competitors who are not as financially strong as the predator will suffer even more, either due to loss of business or reduced profit margin caused by the aggressive price competition. The predation continues until the competitor is driven to failure and forced to leave the market. After the weaker competition has been driven out, the surviving business can raise prices above competitive levels (to "supra competitive pricing"). The business hopes to thereby reap revenues and profits that will more than offset the losses during the predatory pricing period.

en.wikipedia.org
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