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Last edited 29 Mar 2022
The glossary of statistical terms, published by the Organisation for Economic Co-operation and Development (OECD), defines cut-throat competition (destructive competition or ruinous competition) as: ‘…situations when competition results in prices that do not chronically or for extended periods of time cover costs of production, particularly fixed costs. This may arise in secularly declining or "sick" industries with high levels of excess capacity or where frequent cyclical or random demand downturns are experienced.’
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