“Predatory pricing occurs when a firm sells a good or service at a price below cost (or very cheaply) with the intention of forcing rival firms out of business.”
Oligopolies usually adopt a highly competitive strategy, in which case they are able to create similar benefits for more competitive market structures such as lower prices. Oligopolies create new product and process development as well. Price stability being one of the benefits of an oligopoly helps consumers plan ahead and stabilizes their expenditure making this an advantage for the consumers.
Coming to what we call Resale price maintenance also known as fair trade. Such a situation takes place when a supplier influences the prices at which a product is sold by a retailer, such as setting a minimum price in order to keep a product above a certain price. “Before 2009, this behavior was once considered a criminal offence under the Competition Act. Whereas it became a civil provision that barred the practice only when it harmed competition.”
One can only imagine a super pro?competitive outcome in the retail sectors where selling those products requires a high level of customer service. For example, a store selling high?end headphones and the value for that is provided to the customers through the knowledgeable sales staff hired by the companies and the attractive displays in big stores. “Retailers who make the investment in those services risk being undercut by discounting “freeriders” who benefit from their competing retailers’ investment. In these cases, minimum pricing can be seen as a protection of that service investment against those so?called “freeriders”.”
Product tying: “An often illegal arrangement where, in order to buy one product, the consumer must purchase another product that exists in a separate market. Tying falls under the wider legal umbrella of illegal competition that was originally censured by the Sherman Antitrust Act and refined in later acts”
When firms offer two or more kind of products together at a single price rather than offering them separately making it a form of price discrimination. Oligopolies use this price discrimination as a profit maximizing strategy. This is only worth doing if the profit from separating the markets is greater than keeping them combined