>If your prices are already beating the competition, and you already have a solid reputation for low prices, there is no incentive to continue lowering prices,

>If your prices are already beating the competition, and you already have a solid reputation for low prices, there is no incentive to continue lowering prices, even as you cut costs. If they could reach many more customers by lowering prices, even a monopoly could potentially find it profitable to continue lowering prices as they cut costs. A monopoly could also continue to cut costs to head off the threat of antitrust litigation.