limit pricing

简明释义

限制性定价

英英释义

Limit pricing is a strategy used by incumbent firms to set the price of their products low enough to deter potential entrants from entering the market.

限价是一种策略,现有公司通过将其产品的价格设定得足够低,以阻止潜在竞争者进入市场。

例句

1.When analyzing the competition, it's important to consider limit pricing as a strategic tool.

在分析竞争时,考虑限价定价作为战略工具是非常重要的。

2.A successful limit pricing strategy can lead to higher profits in the long run.

成功的限价定价策略可以在长期内带来更高的利润。

3.The effectiveness of limit pricing can vary depending on the industry dynamics.

在行业动态的影响下,限价定价的有效性可能会有所不同。

4.The company adopted a limit pricing strategy to deter potential competitors from entering the market.

该公司采用了限价定价策略,以阻止潜在竞争者进入市场。

5.By setting prices at the limit pricing level, the firm aimed to maintain its market share.

通过将价格设定在限价定价水平,该公司旨在维持其市场份额。

作文

In the world of economics, pricing strategies play a crucial role in determining the success or failure of a business. One such strategy that has garnered attention from economists and business leaders alike is limit pricing. This approach involves setting the price of a product at a level that is low enough to deter potential competitors from entering the market, while still allowing the firm to earn a reasonable profit. Understanding limit pricing can provide valuable insights into how companies maintain their market power and influence competitive dynamics.The concept of limit pricing can be traced back to the theory of contestable markets, which suggests that the threat of competition can impact the pricing behavior of existing firms. By setting prices strategically, a firm can signal to potential entrants that the market is not worth entering due to unprofitable conditions. This is particularly relevant in industries where fixed costs are high, and the marginal cost of production is low. For example, consider a technology company that has developed a unique software product. If this company sets its price artificially low through limit pricing, it creates a barrier for new competitors who might want to enter the market but would find it challenging to compete with the established firm's pricing strategy.Implementing limit pricing requires a delicate balance. If the price is set too low, the existing firm risks losing profits and may not be able to sustain its operations in the long run. Conversely, if the price is set too high, it may invite competition, undermining the firm's market position. Therefore, firms must carefully analyze their cost structures, market demand, and potential competitive threats before deciding on a limit pricing strategy.One notable example of limit pricing can be seen in the airline industry. Airlines often engage in price wars, where they lower fares to attract more customers. However, by doing so, they also send a message to potential new entrants that the market is highly competitive and may not yield sufficient returns on investment. This tactic can effectively keep new airlines from entering the market, allowing established carriers to maintain their dominance.Moreover, limit pricing can also be observed in the retail sector. Large retailers often use this strategy to keep smaller competitors at bay. By offering products at lower prices, they can create an environment where smaller businesses struggle to compete. This not only helps the larger retailers retain their customer base but also reinforces their market position.However, limit pricing is not without its criticisms. Some argue that it can lead to anti-competitive practices, as established firms may engage in predatory pricing to eliminate competition altogether. Regulatory bodies must monitor such practices to ensure fair competition within the market. Additionally, consumers may ultimately suffer if limit pricing leads to reduced choices and innovation in the marketplace.In conclusion, limit pricing is a significant pricing strategy that plays a vital role in shaping market dynamics. By understanding this concept, businesses can better navigate competitive landscapes and make informed decisions regarding their pricing strategies. While limit pricing can help maintain market power, it is essential for firms to strike a balance to ensure long-term sustainability and foster healthy competition within their industries.

在经济学的世界中,定价策略在决定企业的成功或失败中扮演着至关重要的角色。其中一种引起经济学家和商业领袖关注的策略是限制定价。这种方法涉及将产品的价格设定在足够低的水平,以阻止潜在竞争者进入市场,同时仍允许公司获得合理的利润。理解限制定价可以为我们提供有关公司如何维持市场势力和影响竞争动态的宝贵见解。限制定价的概念可追溯到可竞争市场理论,该理论表明,竞争威胁会影响现有公司的定价行为。通过战略性地设定价格,公司可以向潜在的新进入者发出信号,表明由于不盈利的条件,市场不值得进入。这在固定成本高、生产边际成本低的行业中尤为相关。例如,考虑一家开发了独特软件产品的科技公司。如果该公司通过限制定价将价格人为压低,它就为想要进入市场的新竞争者创造了障碍,而这些竞争者发现很难与已建立公司的定价策略竞争。实施限制定价需要微妙的平衡。如果价格设定得过低,现有公司可能会面临利润损失,并且可能无法在长期内维持运营。相反,如果价格设定得过高,可能会吸引竞争,从而削弱公司的市场地位。因此,公司必须在决定采用限制定价策略之前,仔细分析其成本结构、市场需求和潜在竞争威胁。一个显著的限制定价实例可以在航空业中看到。航空公司经常参与价格战,通过降低票价来吸引更多客户。然而,通过这样做,他们也向潜在的新进入者发出信息,表明市场竞争激烈,可能不会带来足够的投资回报。这种策略可以有效地阻止新航空公司进入市场,使现有航空公司能够保持其主导地位。此外,限制定价还可以在零售行业中观察到。大型零售商通常使用此策略来压制较小的竞争对手。通过以更低的价格提供产品,他们可以创造一个小型企业难以竞争的环境。这不仅帮助大型零售商保留其客户群,还加强了他们的市场地位。然而,限制定价并非没有批评。一些人认为,这可能导致反竞争行为,因为已建立的公司可能会采取掠夺性定价来消除竞争。监管机构必须监控此类行为,以确保市场内的公平竞争。此外,如果限制定价导致消费者选择减少和市场创新下降,消费者最终可能会受到影响。总之,限制定价是一种重要的定价策略,在塑造市场动态中发挥着关键作用。通过理解这一概念,企业可以更好地应对竞争环境,并就其定价策略做出明智的决策。虽然限制定价可以帮助维持市场势力,但企业必须寻求平衡,以确保长期的可持续性并促进其行业内的健康竞争。

相关单词

pricing

pricing详解:怎么读、什么意思、用法