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Old 15th Jan 2023, 01:10
  #14 (permalink)  
RevMan2
 
Join Date: Jan 2002
Location: Back of beyond
Posts: 793
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But prices are like chewing gum - once they're stuck to the floor, it's difficult to get them off again - you've just told the market what your pain point is and established a floor.
You'd use predatory pricing to increase or protect market share or to drive a new entrant back into its cave. There was a period of Wild West-like activity in the european cargo market after the departure from the IATA TACT pricing strictures and while state-owned carriers ruled the roost, the only KPI being loadfactor.
Here's an article about how James Daunt (eponymous - and superb - bookshop in Marylebone High Street) turned around Waterstones and Barnes and Noble. He started by stopping the "Buy 2, get one free" offers, reasoning that it devalued the product.
Same applies to aviation
https://tedgioia.substack.com/p/what...=pocket_reader
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