Price wars can be the result of

Question

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Price wars often occur when new firms enter an industry, leading to a situation where all firms find themselves in a prisoners' dilemma. In this scenario, each firm might lower prices to capture or maintain market share, resulting in a price war. This is because, in a prisoners' dilemma, although the firms would collectively benefit from maintaining higher prices, each firm has an incentive to lower prices to outcompete the others, leading to lower profits for all.

Price Wars Can Be the Result of