Price war

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Price war is "commercial competition characterized by the repeated cutting of prices below those of competitors".wikipedia
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Predatory pricing

price dumpingaggressive undercuttingdifferential and preferential railway rates
However, it can be difficult to prove that prices dropped because of deliberate predatory pricing, rather than legitimate price competition.


In oligopoly markets prices can become 'sticky' because if the price rises, competitors will not follow the rise.
However, even a large price decrease will gain only a few customers because such an action will begin a price war with other firms.


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Player (game)

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One competitor will lower its price, then others will lower their prices to match.

Glossary of contract bridge terms

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But if the price falls, other players will merchants will follow suit if they can.

Monopolistic competition

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Commodore Plus/4

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In the early 1980s, Commodore found itself engaged in a price war in the home computer market.


Sega DreamcastDCDreamcast Microphone
Sony's success was further aided by a price war in which Sega lowered the price of the Saturn from $399 to $299 and then from $299 to $199 in order to match the price of the PlayStation–even though Saturn hardware was more expensive to manufacture and the PlayStation enjoyed a larger software library.