Predatory trading example
Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. Predatory pricing violates antitrust law, as it makes markets more vulnerable to a monopoly. However, allegations of this practice can be difficult to prosecute because defendants may successfully argue Predatory Lending: Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taking a mortgage that carries high fees, a high interest rate, strips the borrower of Predatory Trading Markus K. Brunnermeier, Lasse Heje Pedersen. NBER Working Paper No. 10755 Issued in September 2004 NBER Program(s):Asset Pricing Program This paper studies predatory trading: trading that induces and/or exploits other investors' need to reduce their positions.