In the early 1980s, typical round trip coach fares from the East Coast to London were over $500. Then Freddie Laker introduced a competing service into Newark at $350. Major airlines matched his price-and continued to do so until they drove Laker out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. Laker's experience is an example of:
A.
price fixing.
B.
price discrimination.
C.
predatory pricing.
D.
deceptive pricing.
Answer: C
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Marketing
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