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A large airline provides most of the flights between two particular cities. A new, small start-up airline decides to offer service between these two cities.

A large airline provides most of the flights between two particular cities. A new, small start-up airline decides to offer service between these two cities. The large airline immediately slashes prices on this route to the bone, so that the new entrant cannot make any money. After the new entrant has gone out of business, the incumbent firm raises prices again. We would call the behavior of the large airline...

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Multi-level marketing

Competitive pricing

Aggressive marketing

Predatory pricing

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