Term:
Non-price predation
Definition:
Non-price predation is a form of strategic behaviour that involves raising rivals' costs. It is potentially less costly and hence more profitable than predatory pricing. Typical methods include using government or legal processes to disadvantage a competitor. A firm may be able to force competitors to incur significant litigation or administrative costs, at little cost to itself.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993