The Research For Predatory Pricing Of Software Industry

Predatory Pricing is a typical kind of exclusive behavior that some dominant enterprises abuse their advantages to pursue and keep the monopoly and then to exclude other competitors by sale prices lower than cost price in certain scale of markets during certain period. After gaining their ends of excluding the competitors and forming the monopolistic construction, these enterprises will raise up the price to a great extent. Because they disturbs the normal business, changes the centrality of this trade and leads to the monopolization, these sorts of behaviors are all forbidden in legislated competition laws of various countries. But in serious contrast, when encountering with the predacious pricing of software industry, governments of each country surprisingly take a pendulous attitude. It sufficiently reflects the contradiction between laws of anti-predatory pricing based upon the economic characteristics of traditional manufacturing industry and high-tech industry represented by software industry.The software market continuously integrates multi technologies, some even overlapping each other to some degree. Therefore, traditional market edge is experiencing changes with crossing over and blurring, which brings about new problems. It is difficult to define the concept of market which is originally clear for numerous integrated software products, and unable to use integration rate to weigh and explain its market structure, as well as disclose its decisive function of market action or influence on performance. This article tries to make a comprehensive and thorough analysis in theory of the predacious pricing existing in software industry, clarify the intrinsic relationship between software market mechanism & its own characteristics and the predacious pricing strategy of software manufacturers. Based upon the research, this article talks about the danger of predacious pricing strategy of monopoly manufacturers and how to standardize and restrict the predacious pricing in order to maintain market competitive order.