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> But economics teaches us when a player overcharges, others will step in to undercut and take all the market share. 1. They will all reluctantly increase the
by mordae 3y ago
> But economics teaches us when a player overcharges, others will step in to undercut and take all the market share.
1. They will all reluctantly increase the prices, testing waters.
2. And as long as their stuff sells, they will keep rising them.
3. Eventually consumers will get fed up with their preferred brands screwing them over and start switching.
4. Aggressive sales will start to pop up, making the consumers reconsider.
5. Eventually the sales will taper off with new prices established.
Most customers will stay loyal to their brand(s). Some will switch.