When Kleenex cuts its prices in Germany,it caused Puffs to lose profits there.In return,Puffs cut prices in Canada,causing Kleenex to lose profits.This is an example of what?

Question

Quizplus · Accepted Answer

This is an example of multipoint pricing, which occurs when a firm's pricing strategy in one market affects its rivals' pricing strategy in another market. Kleenex's price cut in Germany affected Puffs' profits in that market, leading Puffs to cut prices in Canada, which then affected Kleenex's profits in Canada.

When Kleenex Cuts Its Prices in Germany,it Caused Puffs to Lose