price war

price war definition - business

price war

Intense competition in which competing businesses repeatedly lower prices in an attempt to gain customers. Price wars most often occur in industries, such as airlines, that have high fixed costs.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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