Predatory pricing

Abstract

The price naturally reflects not just the amount of work vested into the goods but it is affected also by a number of other immaterial circumstances (fashion, consumer preferences, branded and unbranded goods, effects of promotion, marketing and advertising campaigns, “price of special preference” – pretium affectionis, season effects, sales “campaigns” various rebates and likewise). Hence there is a whole number of reasons why there are fully justified, exceptionally low prices.