Predatory pricing


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Capital starts out by burning through cash to quickly eliminate other competitors. This behaviour has a name in a book on Ways of Thinking in Economics (Predatory pricing). However, this approach is not optimistic in the book, the main reason is: when a company is eliminated, the company's equipment and professional personnel are still there, these people may enter another company, may also start a business, again involved in the company's related industries, competition again. But it is also possible that the person who eliminated the company will enter the competitor's company, so that there will be a dominant situation, as to whether it will be a monopoly, to borrow a sentence from the book The key to a monopoly is not market share, but the ability to prevent others from entering.


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