destructive competition

Cultural Dictionary

destructive competition definition


Competition that forces several producers out of the market. Destructive competition usually occurs when there are so many producers of a product that prices are driven down to the point where no one makes a profit. It can also happen if a single producer is significantly wealthier than other producers and can afford to cut prices drastically until the other producers are driven out of business.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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