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Abstract

Overcapacity, new entrants encouraged by deregulation, and industries with splintered market shares all create market conditions conducive to price wars being experienced, for example, by airlines, banking and telecommunications. Managements, however, trigger price wars when they lack expertise in reducing prices and when they behave as price takers rather than price makers. Once engaged in a price war, companies have tried a variety of both short term and longer run remedies for ending the price cutting.

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© 2015 Academy of Marketing Science

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Kniffin, F.W. (2015). Price Wars. In: Malhotra, N. (eds) Proceedings of the 1985 Academy of Marketing Science (AMS) Annual Conference. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-16943-9_40

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