Search results
Results From The WOW.Com Content Network
Predatory pricing is a commercial pricing strategy which involves the use of large scale undercutting to eliminate competition. This is where an industry dominant firm with sizable market power will deliberately reduce the prices of a product or service to loss-making levels to attract all consumers and create a monopoly. [1]
Siemens' fine was the biggest of the companies involved because it was a ringleader, the Commission said. About 30 business premises and private homes were searched as part of the investigation. The cartel swapped information on offers from customers and operated a quota system for the division of work.
A price war is a form of market competition in which companies within an industry engage in aggressive pricing activity "characterized by the repeated cutting of prices below those of competitors". [1] This leads to a vicious cycle, where each competitor attempts to match or undercut the price of the other. [2]
For premium support please call: 800-290-4726 more ways to reach us
For premium support please call: 800-290-4726 more ways to reach us
Anti-competitive behavior is used by business and governments to lessen competition within the markets so that monopolies and dominant firms can generate supernormal profit margins and deter competitors from the market. Therefore, it is heavily regulated and punishable by law in cases where it substantially affects the market.
Third (and relatedly), preventing fraud costs money: The Congressional Budget Office, for example, assumes that each dollar spent on measures to prevent health care fraud generates $1.50 in savings.
When fixed costs rise (i.e. administrative expenses) the willingness of medical facilities to cost cut of possible price shifting may increase. When a group of payers become less price-sensitive, hospitals may charge payers a higher price, and so compensate for their losses. But that commonly does not happen by state insured patients.