There are 3 prices you can set:
1. above the competition - gouging, profiteering
2. below the competition - predatory pricing, unfair competition, dumping
3. same as the competition - price fixing, collusion
All are illegal!
1. above the competition - gouging, profiteering
2. below the competition - predatory pricing, unfair competition, dumping
3. same as the competition - price fixing, collusion
All are illegal!
- if a market player wants to sell goods or services at a loss, let them do it and it benefits the consumer
- if the competition goes out of business and the prices are raised, somebody else will see the opportunity to enter the market at a lower cost.
Rinse and repeat. The consumers benefit from it either way.