Predatorypricingisacontroversialstrategywhereadominantfirmdeliberatelysetspricesbelowcosttodrivecompetitorsoutofthemarket,withtheintenttoraisepriceslaterandrecouplosses.Criticsarguethatthispracticeisrareanddifficulttosustain,asitrequiresdeeppocketsandrisksattractingnewcompetitorsoncepricesrise.Supportersclaimitcanbearational,albeitaggressive,tactictogainmarketcontrol.Theparadoxliesinbalancingshort-termlossesagainstlong-termgains,whileregulatorsstruggletodistinguishtruepredationfromlegitimatecompetitivepricing.
