The document discusses price wars, defining them as when firms struggle for market share by cutting prices of goods and services. Price wars have negative consequences as they are economically devastating and psychologically debilitating, taking a toll on profitability. To win a price war, firms should understand customer price sensitivities and use price policies selectively, focusing on price-sensitive segments when the firm has a strong brand, scale advantages, or lower costs compared to competitors. Non-price strategies like re-targeting markets, emphasizing quality and service over price, linking price cuts to other incentives, and alerting customers to risks can also help escape damaging price wars.