<p>The practice of one parts of business subsidizing another parts is known as cross-subsidization. However, this name is applied to the practice regardless of whether its done to undercut competition or some other strategic reasons.</p>
<p>Lowering prices below cost of production to undercut competition is called dumping. However, again this label is being applied regardless whether this is being subsidized by other products firm makes, or firm just draws upon its financial reserve.</p>
<p>To my best knowledge there isn't a name for combination of the two. You might try to search for both keywords cross-subsidization and dumping at the same time.</p>

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2022-12-02T10:20:06.847Z
2022-12-02T10:20:06.847Z
1muflon1
<p>Let's say for example, that Amazon uses profits from AWS to sell Kindles for $20, or cheaper than any company that only makes e-readers could possibly compete with.</p>
<p>Is this a specific type of subsidy, or is there a term for using profits from one sector to subsidize a different sector for the purpose of undercutting competition? I'm trying to do historical research on this type of situation, and I'm finding it hard to search for.</p>

<subsidies>
Term for intra-company or intra-country subsidy that's used to undercut competition in a different sector
n_i_c_k
# Term for intra-company or intra-country subsidy that's used to undercut competition in a different sector

(Asked by: username_0 on 2022-12-02)

Let's say for example, that Amazon uses profits from AWS to sell Kindles for $20, or cheaper than any company that only makes e-readers could possibly compete with.

Is this a specific type of subsidy, or is there a term for using profits from one sector to subsidize a different sector for the purpose of undercutting competition? I'm trying to do historical research on this type of situation, and I'm finding it hard to search for.

**Tags:** subsidies


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## 1 answers

### Answer by username_1 on 2022-12-02. Score: 1 | Accepted answer

The practice of one parts of business subsidizing another parts is known as cross-subsidization. However, this name is applied to the practice regardless of whether its done to undercut competition or some other strategic reasons.

Lowering prices below cost of production to undercut competition is called dumping. However, again this label is being applied regardless whether this is being subsidized by other products firm makes, or firm just draws upon its financial reserve.

To my best knowledge there isn't a name for combination of the two. You might try to search for both keywords cross-subsidization and dumping at the same time.


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