Price war is basically a state of strong competitive opposition, then one competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new round of reductions starts. This cycle goes on until both either one or the other party becomes worse off but in most of the cases both of the parties are worse off. Below is an image showing price warSunday, January 17, 2010
Price War
Price war is basically a state of strong competitive opposition, then one competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new round of reductions starts. This cycle goes on until both either one or the other party becomes worse off but in most of the cases both of the parties are worse off. Below is an image showing price war
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