Price War

Price War

A form of competition where two or more competitors begin to consistently lower the price below the competition to attract price-sensitive buyers. Consumers usually love price wars, as it lowers the cost of these goods. Sellers usually engage in price wars to get the price of the good so low that their competition can no longer afford to sell at such low (or negative) profits, forcing them out of business (or at least out of this particular market).

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