Distinguish between predatory pricing strategy and bundling strategy.

What will be an ideal response?

Predatory pricing is pricing that threatens to keep a competitor out of the market. It is a price that is so low that it will be profitable for the firm that adopts it only if a rival is driven from the market. There is also the possibility that the predatory firm could raise prices to monopoly levels after the rival was driven out.

Bundling refers to a pricing arrangement under which the supplier offers substantial discounts to customers if they buy several of the firm’s products, so that the price of the bundle of products is less than the sum of the prices of the products if they were bought separately.