What does price war mean?

Definitions for price war
price war

This dictionary definitions page includes all the possible meanings, example usage and translations of the word price war.

Princeton's WordNet

  1. price war, price competitionnoun

    intense competition in which competitors cut retail prices to gain business

Wikipedia

  1. Price war

    Price war is "commercial competition characterized by the repeated cutting of prices below those of competitors". One competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new round of reductions starts. In the short term, price wars are good for buyers, who can take advantage of lower prices. Often they are not good for the companies involved because the lower prices reduce profit margins and can threaten their survival. In the medium to long term, price wars can be good for the dominant firms in the industry. Typically, the smaller, more marginal firms cannot compete and must close. The remaining firms absorb the market share of those that have closed. The real losers, then, are the marginal firms and their investors. In the long term, the consumer may lose too. With fewer firms in the industry, prices tend to increase, sometimes higher than before the price war started.

ChatGPT

  1. price war

    A price war refers to a competitive situation where businesses repeatedly cut the prices of their products or services in order to undercut their competitors and gain market share. It often begins when one business reduces its price, prompting others to do the same to remain competitive. While it may benefit consumers in the short term, it can be detrimental for businesses, especially if it leads to reduced profits or even losses.

Wikidata

  1. Price war

    Price war is "commercial competition characterized by the repeated cutting of prices below those of competitors". One competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new round of reductions starts. In the short term, price wars are good for consumers, who can take advantage of lower prices. Often they are not good for the companies involved because the lower prices reduce profit margins and can threaten their survival. In the medium to long term, price wars can be good for the dominant firms in the industry. Typically, the smaller, more marginal, firms cannot compete and must close. The remaining firms absorb the market share of those that have closed. The real losers then, are the marginal firms and their investors. In the long term, the consumer may lose too. With fewer firms in the industry, prices tend to increase, sometimes higher than before the price war started.

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Numerology

  1. Chaldean Numerology

    The numerical value of price war in Chaldean Numerology is: 1

  2. Pythagorean Numerology

    The numerical value of price war in Pythagorean Numerology is: 3

Examples of price war in a Sentence

  1. Mohsen Qamsari:

    We don't want to start a sort of a price war, we will be more subtle in our approach and may gradually increase output.

  2. Patrick Walujo:

    A price war is not unusual for the introduction of a businesses like this ... as promotions are huge to seize market share, perhaps Grab is hoping it can squeeze us. The reality is that because we offer multiple services and products our drivers generate more revenues, and our investors understand that.

  3. Phil Seymour:

    If you increase capacity too much because you've overestimated that demand shift, you just create a price war.

  4. Goldman Sachs:

    The prognosis for the oil market is even more dire than in November 2014, when such a price war last started, as it comes to a head with the signi?cant collapse in oil demand due to the coronavirus.

  5. Lou Lili:

    The price war, the oldest tactic that banks use to attract deposits, is becoming more difficult.

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"price war." Definitions.net. STANDS4 LLC, 2025. Web. 10 Feb. 2025. <https://www.definitions.net/definition/price+war>.

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