Cut-throat competition
From Wikipedia, the free encyclopedia
 |
This article may need to be wikified to meet Wikipedia's quality standards. Please help by adding relevant internal links, or by improving the article's layout. (July 2011)
Click [show] on right for more details.
No reason has been cited for the Wikify tag on this article.
|
Cut-throat competition, also known as destructive or ruinous competition, refers to situations when competition results in prices that do not chronically or for extended periods of time cover costs of production, particularly fixed costs. This may arise in secularly declining or "sick" industries with high levels of excess capacity or where frequent cyclical or random demand downturns are experienced.[1]
[edit] See also
[edit] References
- ^ Khemani, R. S.; Shapiro, D. M. (compilers) (1993). "Glossary of Industrial Organisation Economics and Competition Law" (pdf). Directorate for Financial, Fiscal and Enterprise Affairs, OECD. http://www.oecd.org/dataoecd/8/61/2376087.pdf. Retrieved 2006-11-13.
