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FIGHTING BRAND

Statistics Directorate    
Definition:
A Fighting brand refers to a new brand of an existing or similar product which is priced very low or below costs and is made available for a limited time period in specific market areas in order to combat competition from other (usually smaller) firms.

Context:
Firms introduce "fighting brands" to avoid lowering the prices charged for their established brands as this may prove to be costly for reasons such as these established brands being priced uniformly across a wide number of markets. Fighting brands' are often viewed as a form of predation or anticompetitive practice intended to drive out competitors from a given market. As with other forms of predation, however, their chances of success are limited.

Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Cross References:
Predatory pricing

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 03, 2002

Last updated on Wednesday, March 05, 2003