price war
attempt by a market competitor to drive one or more other competitors out of the market by pricing relatively lower. Before launching a price war, the initiator must be sure that it can survive a low price longer than the competitors can.
price war: a situation in which two or more companies each try to increase their own share of the market by lowering prices.
principal: The amount of money borrowed in a debt agreement and the amount upon which interest is calculated.
Price war A situation where competing firms respond to a rival's price cut with even larger price cuts.
price wars
variable pricing and real-time pricing
pricing for profit maximization
price discrimination ...
Price war
Commodity
Discounting
[edit] References
^ Di Frances, John. "Relationship Selling Sales Speaker." Motivational Speaker - Professional Keynote Speaker - Motivational Public Business Speakers Bureaus. 14 Mar.
^ Wishabi.
they are leading to price wars
they are not producing a marketing mix that the market values
Strategic consequences of the effect ...
If firm A threatens a price war, then firm B might be dissuaded from entering, not just in a particular market, but in any of A's markets.
To Air Canada for starting a new price war with West Jet. The courts recently ruled that it was not illegal for Air Canada to aggressively cut prices and try to under-cut competitors.
There are stories about retail price wars, penny newspapers, and even gas taxes.
Or they may collude informally, by preferring gentle NON-PRICE COMPETITION to a bloody PRICE war. Because what one firm can do depends on what the other firms do, the behaviour of oligopolists is hard to predict.
BlackRock dismisses ETF price war concerns
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Young and carefree - or cautious?
Therefore, each firm has an incentive to cut prices, but, this actually leads to a price war. If products are perfect substitutes this assumes price will be driven down to marginal cost.
Collusion - Price determination by oligopolists which is coordinated and aims to avoid the danger of price wars breaking out or agreements between businesses designed to reduce competition.
It also indicates a firm's ability to withstand adverse conditions such as falling prices, rising costs, or declining sales. The higher the figure, the better a company is able to endure price wars and falling prices.
 See also: Elastic, Elasticity, Brand, E-commerce, Information technology
  
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