This is the theory that airline companies have followed since forever. Cliff notes version, thanks to chapter 11 bankruptcies, the competitors never will go ou

This is the theory that airline companies have followed since forever. Cliff notes version, thanks to chapter 11 bankruptcies, the competitors never will go out of business. For another counter-example, take any business with low barriers to entry. Sure, one set of competitors go out of business, but you have new ones. Retail outlets tend to be a good example. Top retail brands change regularly as new ones come in and push old ones out. This has been going for as far back as I have looked. Therefore any retail brand should operate as if it will happen in the future as well.