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What is predatory pricing?

What is predatory pricing? Here are some definitions.

Noun
  1. (economics) A strategy of selling a good or service at a very low price so as to drive one's competitors out of business (at which point one can raise one's prices more freely).
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Examples
Only when the creditors sued did the airlines plead guilty to predatory pricing.
The Bloc of old might have believed that the federal government had no place deciding when a business had engaged in predatory pricing.
A wide variety of business practices can run afoul of Section 2, including everything from forcing business partners to sign exclusive contracts to predatory pricing.
Furthermore, Bill C-454 proposes to decriminalize the criminal provisions dealing with price discrimination and predatory pricing.
He said that predatory pricing is a short-term strategy that does not deliver sustainable price competition but on the contrary it is designed to reduce competition.
If a business offers free products in an effort to significantly reduce or eliminate competition, it will likely be found guilty of predatory pricing.

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