Price wars generally occur in oligopolistic markets and are characterized by repeated cuts in prices below competitors' prices. While this can boost short-term profits through increased market share, it erodes profit margins and can lead firms to make losses or shut down. Price wars impact firms through reduced profits and investment, consumers through both lower prices and potentially reduced quality, and suppliers who may face pressure to accept lower prices. Examples include the UK supermarket industry and US pizza chains, where repeated price cuts had mixed effects on market share and long-term consumer prices.
Gold standard is a monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold.
Gold standard is a monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold.
Building the Circular Flow of Income & Spendingtutor2u
This revision presentation helps students develop their understanding of the Circular Flow of Income & Spending. It builds the circular flow step-by-step and then provides examples of the circular flow in action. An essential revision presentation for a core macroeconomic concept.
This is a ppt which explains the economic concept gains from trade. It can also be used to explain biography of adam smith and david ricardo. both were great economists.
The theory of comparative advantage, first developed by English economist David Ricardo in 1817, is a theory about the potential gains from trade for companies, countries or people that arise on account of differences in factor endowments or technological progress.
Students should be able to:
Understand the characteristics of this market structure with particular reference to the interdependence of firms
Explain the behaviour of firms in this market structure
Explain reasons for collusive and non-collusive behaviour
Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
Building the Circular Flow of Income & Spendingtutor2u
This revision presentation helps students develop their understanding of the Circular Flow of Income & Spending. It builds the circular flow step-by-step and then provides examples of the circular flow in action. An essential revision presentation for a core macroeconomic concept.
This is a ppt which explains the economic concept gains from trade. It can also be used to explain biography of adam smith and david ricardo. both were great economists.
The theory of comparative advantage, first developed by English economist David Ricardo in 1817, is a theory about the potential gains from trade for companies, countries or people that arise on account of differences in factor endowments or technological progress.
Students should be able to:
Understand the characteristics of this market structure with particular reference to the interdependence of firms
Explain the behaviour of firms in this market structure
Explain reasons for collusive and non-collusive behaviour
Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
An article which was published in Harvard business Reviews and was introduced by Nirmalaya Kumar
Presentaions contains different strategies, suggestions as well as different case studies of successful bussiness to fight with respect to low cost bussiness as there main key success factors
This short presentation followed from my blog post on the subject, where I thought it important to look at the connections between brands and inflation which, as we all know, has been raging both in India and around the world as part of the economic recovery after the Covid-19 lockdowns.
Here, I look at the different types of consumer price inflation and how companies might deal with them. As well as the impact of inflation on consumers' brand choices as well as market segments.
The words – price war – are enough to strike fear and dread into business people. It doesn’t matter if you are a big company or a small one. So why do companies start them, how should you respond, and how do they expect to win? If implemented correctly, a price war can be an effective pricing strategy.
Policies to Correct Current Account ImbalancesHugo OGrady
Policies to Improve Current Account Imbalance content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Expenditure Reducing Policies
Expenditure Switching Policies
Supply Side Policies
Current Account Influences and Impacts content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Factors Influencing the Current Account
Impacts of Current Account Deficits
Causes and Impacts of Unemployment content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Causes of Unemployment
Costs of Unemployment
Causes and Impacts of Inflation content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Causes of Inflation
Costs of Inflation
Why do we not want Zero Inflation?
Deflation
Impacts of Economic Growth content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Positive Impacts
Negative Impacts
Causes of Economic Growth content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Actual & Potential Economic Growth
Demand side Causes of Economic Growth
Supply side Causes of Economic Growth
Constraints on Economic Growth
Export-led Growth
Deregulation content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Deregulation
Pros & Cons of Deregulation
Regulation content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Regulation
Price Capping: RPI-X & RPI+K
Profit Capping: Rate-of-Return
Performance Targets
Self-Regulation
Nationalisation content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Nationalisation
Limitations of Nationalisation
Privatisation content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Privatisation
Limitations of Privatisation
Competition Policy content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Competition Policy
The Competition and Markets Authority (CMA)
Evaluation of Competition Policy
Government Failure content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Government Failure
Causes of Government Failure
Buffer Stock Schemes content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Buffer Stock Schemes
Limitations of Buffer Stock Schemes
Maximum & Minimum prices content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Maximum Prices
Minimum Prices
Pros & Cons of Maximum & Minimum Prices
Limitations of Maximum & Minimum Prices
Alternatives to Maximum & Minimum Prices
Volatile Commodity Markets content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Volatile Commodity Markets
Impacts of Market Volatility
Information Provision content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Information Provision
Pros and Cons of Information Provision
State Provision content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro and Analysis of State Provision
Pros and Cons of State Provision
Information Gaps content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Information Gaps
Information Gaps & Merit goods
Information Gaps & Demerit goods
Adverse Selection: Akerlof's Market for Lemons
Moral Hazard & the Principal-Agent Problem
Public Goods content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro to Public Goods
Under-Provision of Public Goods (Marginal Analysis)
Under-Provision of Public Goods (No Marginal Analysis)
Regulation to Correct Market Failure content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Intro and Analysis of Regulation
Pros and Cons of Regulation
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
3. Price wars
Definition: competition in prices characterised by the repeated cutting of prices
below those of competitors
One competitor will lower its price to undercut its rivals and boost short term profit.
Others will then lower their prices to match
If one firm reduces their price again, possibly in retaliation, a new round of reductions starts
All firms make less SNP in the short run as they receive lower prices (as per KDC result)
Conditions: Price wars generally take place in oligopolies where firms are making
only slightly differentiated versions of the same product
As a firm’s product is a close substitute to its rivals, cutting can quickly increase market share
as consumers would mostly choose the cheapest product
If a firm expects that a price war will boost its long run profits from a growth in market share,
more so than it harms its short run profits, then a price war can be a rational strategy
This is most likely if the aggressor firm believes it can sustain its first mover advantage in
market share and/or that its rivals will not survive the war
But this can be a very risky strategy as there is no guarantee of greater future profit
5. Impacts of Price wars
Impacts on Firms:
Price wars are nearly always bad news for most businesses that get into them.
Deep discounts on prices doesn’t necessarily increase revenues.
PED will be likely be inelastic as the mutual price cutting of rivals will mean few extra sales
Price cutting erodes profit margins and can lead to firms making losses and shutting down
However: This could be of benefit to survivors of the war
Lower profits mean fewer resources are available to fund capital investment.
Reduced Dynamic efficiency
Impacts on Consumers:
Quality may be adversely impacted as firms seek to cut costs
Prices fall for consumers, an increase in consumer surplus
Price wars on essential products can have a bigger relative impact on low-income families (progressive)
However: Should the price war lead to the death of some firms, the survivors might have
more market power in future and set higher prices than before the war, to recoup lost profits
There might also be lower choice as there are fewer firms
Impacts on Suppliers:
Firms at war aim to cut costs to sustain their price cuts, so may look to pay suppliers less
This can be particularly bad if the firm has significant monopsony power
7. Examples of Price wars
UK Supermarkets: The big four UK supermarkets (Tesco, Sainsburys, Asda,
Morrisons) have routinely got into price wars
This has stepped up as well with the growth of discount supermarket chains Aldi and Lidl in
recent years
They regularly cut prices on goods such a milk, bread, cereal and petrol
Despite this, none of the big four firms have seen any significant growth in their market share
However: the wars have had significant impacts on the supermarkets’ suppliers, with many
food producers being forced out of business (146 in 2014)
US Pizza Chains: Pizza Hut, Little Caesar’s and other firms engaged in a price war
via heavy couponing and deals such as 2-for-1
This led to market share gains for the largest firms, but loses for the smaller ones’
Quality of Pizzas was noticed to suffer
A long-term impact was that consumers got used to low prices, and as a result, they became
unwilling to pay higher prices later, limiting the payoff for the survivors despite ‘winning the
war’
“Only the dead have seen the end of war.” - Plato
8. Where next?
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