Difference between revisions of "Price war"
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(While this is good for the public, it can result in deflation if done on a large scale and can cause one of the competitors to go out of business.) |
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A '''price war''' is a battle between competitors in business to undersell each other's prices, such that the prices fall for the consumers. While this is good for the public, it can result in [[deflation]] if done on a large scale and can cause one of the competitors to go out of business. | A '''price war''' is a battle between competitors in business to undersell each other's prices, such that the prices fall for the consumers. While this is good for the public, it can result in [[deflation]] if done on a large scale and can cause one of the competitors to go out of business. | ||
| − | A example of a price war in May 2017 is [[Amazon]] and [[Wal-Mart]] competing with other by lowering the threshold amount for free two-day shipping on online orders placed with them. | + | A example of a price war in May 2017 is [[Amazon (company)|Amazon]] and [[Wal-Mart]] competing with other by lowering the threshold amount for free two-day shipping on online orders placed with them. |
| − | [[ | + | [[Category:Economics]] |
Latest revision as of 19:23, September 10, 2018
A price war is a battle between competitors in business to undersell each other's prices, such that the prices fall for the consumers. While this is good for the public, it can result in deflation if done on a large scale and can cause one of the competitors to go out of business.
A example of a price war in May 2017 is Amazon and Wal-Mart competing with other by lowering the threshold amount for free two-day shipping on online orders placed with them.