Sometimes. The existing competitors might lose more profit by dropping price to drive out the newcomer than they would by just allowing the competition. This should become more common as the cost of shipping becomes smaller relative to the profit margin.
If by competitive you mean “competition drives down prices as far as they will go,” I would disagree that that’s how the world works.
Sometimes. The existing competitors might lose more profit by dropping price to drive out the newcomer than they would by just allowing the competition. This should become more common as the cost of shipping becomes smaller relative to the profit margin.
If by competitive you mean “competition drives down prices as far as they will go,” I would disagree that that’s how the world works.