It is often argued that price wars may be more likely to occur during low demand periods

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It is often argued that price wars may be more likely to occur during low demand periods than high demand periods. Are there factors that might reverse this implication? That is, can you think of reasons why the attractiveness of deviating from cooperative pricing might actually be greater during booms (high demand) than during busts (low demand)?
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Economics of Strategy

ISBN: 978-1118319185

6th edition

Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer

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