Right. There are two possible very different strategies - even illegal collusion. There is no reason to compete aggressively until one of the "several" chooses

Right. There are two possible very different strategies - even illegal collusion. There is no reason to compete aggressively until one of the "several" chooses to break ranks and do so. And if the one that breaks ranks is tiny, that might still not be enough reason for the others. Since there is a good chance they will just fail.