Legal Dictionary of Pakistan

Areeda-turner test

antitrust. An economic test for predatory pricing whereby a price below average variable cost is presumed to be predatory and therefore illegal. ( this test is widely accepted by federal courts. Its name derives from the coauthors of an influential law-review article: phillip areeda & donald f. Turner, predatory pricing and practices under section 2 of the sherman act, 88 harv. L. Rev. 692 (1975). They reformulated their test in 3 phillip areeda & donald f. Turner, antitrust law vi 710-722 (1978). See predatory pricing.