Price War Brews Between Amazon and Wal-Mart
Ali had Frazier. Coke has Pepsi. The Yankees have the Red Sox. Now Wal-Mart and Amazon. With the economy the way it is everyone is looking for the cheapest website and the cheapest product for online shopping. With both of these sites people are finding the lowest prices. Prices on different items are falling and they are both copying eachother.
If a price on a toaster goes down on Wal-Marts site then later on that day the price will go down for Amazon. By watching what eachother is doing they both will have the same chance of getting the sale. Do you think they are taking things to far? Or is all this stuff worth it for that extra money?
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This is not illegal as long as they dont come together and plan the prices for their products. I’m sure this is just the market following the market leader.
This happens alot because the followers always try to keep there prices close to the price of the popular company so they can be more competitive. This practice is perfectly fine and as long as it lowering prices and not raising I think everybody will be okay with it.