If one provider were to offer the best devices at the lowest prices, and offer consumers all-inclusive call/text/data plans for a rate far below the competition, it is likely that, in time, most consumers would migrate to that provider. For example, the widespread use of cell phone and mobile technology has created a veritable stampede of providers offering lowered price plans and high-tech devices to woo consumers to their doorstep. Competition in the marketplace not only gives consumers a choice of product and service quality, but keeps prices down.
While most consumers may be of the opinion that prices can never be too low, the fact is that consumers may be ambushed if super-low pricing forces competitors out of the market, only to be followed by significant price increases. The practice of injuring or exploiting others for personal gain or profit, including predatory pricing practices.ġ580-90 Latin praedātōrius What is Predatory Pricing.
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