Price Competition Effects
The cluster debates the consequences of aggressive price competition, including harm to small sellers, race-to-the-bottom dynamics, profit erosion, and suspicions of predatory pricing to eliminate rivals before raising prices.
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Won’t this destroy any small seller who can’t compete on price?
It's competition over lowest price. Which results in cannibalization and lower profit for all players.
Are they losing money to compete on price?
Is it because of competition or prices goes down?
More likely the other way around. Destroy the competition and keep prices the same, but push costs down.
Competition doesn't equal lower prices.
Why wouldn't a competitor undercut them if they did that?
Competition will bring the price down.
Not trying to troll, but isn't lowering prices always a competitive pressure on other players in the market.
competition based on price enabled by online price comparison. consumers buy lots of things based on who is the cheapest. even being $1 cheaper will win a sale. so it becomes a race to the bottom.