Game Theory at Work(c) How to Use Game Theory to Outthink and Outmaneuver Your Competition

Firms have trouble profiting when they compete on price because price is very visible to consumers.

To stop your rival from undercutting your price, your rival needs to believe that you will quickly respond to any price reduction.

It’s almost impossible to restrict price competition among many firms that sell near identical goods.

Internet retailers necessarily face massive competition because every other store that sells similar products is a rival.

Complex pricing can reduce price competition by making it difficult for customers to comparison shop.