Suppose that an entrant introduces a product that is identical to product A.

Consider a firm selling two products, A and B, that substitute for each other. Suppose that an entrant introduces a product that is identical to product A. What factors do you think will affect (1) whether a price war is initiated and (2) who wins the price war?

“Get 15% discount on your first 3 orders with us”
Use the following coupon
FIRST15

Order Now