Flooding the market

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Flooding the market refers to when an excess amount of inventory for sale causes an undesired drop in price for the product, in extreme cases making the products impossible to sell at any price.

Businesses take measures to avoid this. For examples, publishers will release books from popular authors under pseudonyms, as with the Kenyatta series by Donald Goines, which were published under the name Al. C. Clarke. The same is also the case with Stephen King, when he published several books under the pseudonym Richard Bachman.

The North American video game crash of 1983 was largely caused by excess inventory of low-quality games and systems. Atari so greatly over-produced the game E.T. that they were unable to sell them and buried them in a landfill.

When flooding the market is done intentionally in an effort to eliminate competition, it is known as dumping.

See also[edit]



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