Two competitors, Sirius Satellite Radio and XM Satellite Radio own the market for satellite radio. They are constantly trying to one-up the other by creating new listening options for users. Recently, some newcomers to the market are eroding their combined market share. Despite their differences, these two companies feel that they could be stronger if they worked together on a project. The decide to set subscription prices for their services extremely low while still offering all options that customers have come to appreciate. What pricing tactic are these two companies employing?

Question

Quizplus · Accepted Answer

The Answer of Two competitors, Sirius Satellite Radio and XM Satellite Radio own the market for satellite radio. They are constantly trying to one-up the other by creating new listening options for users. Recently, some newcomers to the market are eroding their combined market share. Despite their differences, these two companies feel that they could be stronger if they worked together on a project. The decide to set subscription prices for their services extremely low while still offering all options that customers have come to appreciate. What pricing tactic are these two companies employing?

Two Competitors, Sirius Satellite Radio and XM Satellite Radio Own