Title: PRICE WARS: THE COST OF A COMPETITIVE BEHAVIOUR

Essay Details

Subject: Business
Author: Donald B
Date: December 10, 2012
Level: University
Grade: A
Length: 7 / 1914
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

All too often, there are no winners ? and few healthy survivors. Price wars indeed represent one of the extreme forms of competitive interplay in the market place, causing great losses. On the one hand, firms take a blow in terms of ability to innovate, consumer equity, and margins; they may forego their competitive advantage, fall victim to substitutes, and even face bankruptcy...

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On the other hand, consumers, benefit from lower prices in the short run. In the long run, however, they may develop unrealistic reference prices and suffer from lower quality products in the long term. In a broader contest, society may suffer from suboptimal allocation of resources. Definitions Basically, price wars represent competitive behaviour...

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