Prisstrider

Prisstrider, or price wars, describe sustained price competition in which rival firms repeatedly cut prices to win or protect market share. They occur in many sectors—retail, telecommunications, airlines, and electronics—and can be sparked by new entrants, excess capacity, or demand shifts that encourage aggressive pricing.

Typical tactics include temporary discounts, loss-leader promotions, price matching, and bundling. These can benefit consumers in the short term, but they compress margins, reduce profitability, deter investment, and may push weaker competitors from the market, potentially harming long-run competition.

Regulation varies by country. Predatory pricing—pricing below cost to eliminate rivals—can be illegal under antitrust or competition law, though proving intent and sustainability is difficult. Price wars driven mainly by competitive dynamics are not automatically illegal, but may attract scrutiny if they harm consumer welfare or lead to market dominance.

Responses for firms include efficiency gains, product differentiation, customer loyalty programs, strategic partnerships, or targeted pricing to protect margins without sacrificing long-term market health.

Price competition is most common where prices are transparent and products are standardized, but it can arise in any sector with aggressive promotions and elastic demand.