#TradingTypes101 Price predation is a competitive strategy where a company sets prices extremely low to drive competitors out of the market. This tactic often leads to short-term losses but can result in long-term dominance once rivals exit. After eliminating competition, the predator typically raises prices to recover losses. Though effective, price predation is considered unethical and is illegal in many countries due to its impact on market fairness and consumer choice. Regulators closely monitor such behavior to maintain healthy competition. Businesses must weigh the risks before using this strategy. #PricePredation #MarketCompetition #BusinessEthics #MonopolyRisks