AREEDA–TURNER TEST

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 ¶ ¶ 710–722 (1978). See PREDATORY PRICING. [Blacks Law 8th]