price war

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price war

An aggressive competition between two or more providers of goods or services, in which the price is lowered to a minimum, as a means of earning more money. The NHS has traditionally fixed prices between trusts, which has allowed quality of service to remain high. The NHS Operating Framework for 2011/2, aims to bring “…new flexibility being introduced opportunity for providers to offer services…” at less than the mandatory tariff prices.
References in periodicals archive ?
The problem with so-called price wars is that consumers increasingly see them as smoke and mirrors, and are looking for more than low prices from their retailers.
The price war amongst the big four is really damaging them all and making it into a race to the bottom.
These retailers should reinforce their commitment to Fairtrade by abandoning the price wars and instead giving a signal to consumers that a low price is not a fair price.
However, I suppose price wars will bring room prices down to a level that will make demand soar.
However the scheme failed, pushing price wars underground, reported Reuters.
During this time, more internal (ISA and then PCI) modems were available through retail channels and even service providers, and the price war began.
The move marks a new move in the price wars which could see Boots and Superdrug drawn into the fray.
Low production costs will determine the ability to wage the kind of bitter price wars that detonated early last year when both companies offered retail discounts of up to 50%, compared with zero to 5% normally At one point, a 2-liter bottle of soda cost as little as 80 cents.
Klemperer (1989) and Elzinga and Mills (1998) use discrete-time dynamic models to explore the theory of price wars triggered by entry and show that customer switching costs can produce the sequence of events just described.
Initially, national competitors will initiate price wars with regional competitors.
Then Henry Kravis called, summoning the seasoned veteran into a battle zone of price wars and sagging brand loyalty.
In our highly fragmented and segmented market, profit margins could be driven down to survival levels when volume drops precipitously and price wars ensue.