Term:
Deep pockets
Definition:
Deep pockets is an expression used to describe the idea that extensive financial and other resources of large firms or conglomerates can be used to sell below cost for extended periods of time.
In this view, deep pockets are thought to give such firms an unfair advantage over competitors particularly if the practice of selling at prices below costs imposes losses and drives out competing firms.
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