price competition


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price competition

see COMPETITION.

price competition

a form of rivalry between suppliers that involves an attempt to win customers by offering a product at a lower PRICE than competitors. Price competition is especially beneficial to consumers insofar as it results in the establishment of prices that are consistent with the real costs of supplying the product and serves to improve the RESOURCE ALLOCATION efficiency of the market by eliminating inefficient, high-cost suppliers (see PERFECT COMPETITION). From the suppliers’ point of view, price competition is often something to be resisted because it reduces the profitability of the market, and, where conditions permit (for example, OLIGOPOLY), suppliers may attempt to avoid price competition. See PRICE LEADERSHIP, PRICE PARALLELISM, COLLUSION, COMPETITION METHODS.
References in periodicals archive ?
The Blueprint offers several strategies to help patients address rising drug costs, including enhancing price competition. The Blueprints many actions will further enhance this goal.
at *2, but ignored its role in generating market power; (4) the court's crediting of anecdotal evidence that "some" and a "number" of managed care organizations "sought to" generate price competition among therapeutic alternatives, id.
Simon Polito, chairman of the payday lending investigation group and CMA deputy panel chairman, said: "There is a substantial gap between the cheapest and most expensive loans, so borrowers could benefit if we can help them compare prices more effectively, which in turn would stimulate greater price competition and lower costs.
Mayr-Melnhof managed to maintain the sales of its core divisions - cartonboard production as well as cartonboard processing despite the increasing price competition, it said in a press release.
It reflected intense price competition among retailers, after freezing weather hit spending, with spring fashion lines as well as gardening products failing to take off.
Shoppers were quids in as intense price competition among retailers put the cap on inflation
Japanese electronics firms are exhibiting high-end televisions with better profitability at the world's top electronics show which started in the United States on Tuesday, aiming to shore up their slumping operations amid fierce price competition especially for smaller models.
Taipei, July 18, 2012 (CENS) -- With the Chinese government's new industry regulations triggering a trend for mergers among local tire makers, which is expected to cease price competition to stabilize China's tire market, the Taiwan-based Cheng Shin Rubber Co.
Increased choices, enhanced services and greater price competition and transparency may make large retailers such as M&S vulnerable if they don't have a compelling proposition.
The report's handling of the technical pricing issues could be questioned, but the main flaw lay in a failure to understand economic development and interprovincial price competition. When you are playing political games, price isn't a technical issue.
One strategy is price competition which is often defined as Bertrand competition in economics literature.
The move comes as price competition is intensifying in the Japanese aviation market following the launch of flights to and from Japan by a series of low-cost Asian carriers.