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This strategy is to put small businesses out of business and create a monopoly. Predatory Pricing Examples Some examples include company X reducing its prices to the point where the competition cannot compete. Distinguishing features of the framework include a broader delineation of indicators that potentially predatory behavior might have occurred, an expanded view of the possible motivations for aggressive and predatory pricing behavior that are not admitted into current analyses, and a more comprehensive analysis of competitors' strategic responses to such pricing and the varying consequences of these responses. Predatory pricing involves the direct attempt by a major competitor to drive other companies out of business by setting prices unrealistically low. The classical example of predatory prices are prices below average variable costs, following the second version of the Areeda-Turner test. A predatory price is considered to be one. Predatory pricing can act as a strong barrier to entry, since potential competitors will steer clear of any company sending such a strong competitive signal. Examples of this include the battle between the VHS. Predatory pricing is the practice of deliberately setting prices so low that competitors cannot compete, and so are driven from the marketplace. The authors offer a framework for understanding aggressive and predatory pricing that incorporates research from marketing and related disciplines as well as traditional and newer streams of economic analysis. Consumers made choices amongst incompatible technologies until the scales tipped towards standardization. To date, public policy analysis of such behavior has relied on traditional economic theory, with State and Federal policies creating conflicting guidelines for managers. Although aggressive pricing by one firm may initially provide lower prices to consumers, the behavior also can be predatory and ultimately result in undesirable welfare consequences. The authors examine competitive interaction in the context of aggressive pricing strategies.