The way competitors undercut each other is by cutting prices. The player with the deeper pockets drives the other out of business, then takes over their assets and uses them to recoup their price-war losses. Then on to the next competitor. Who said businesses only care about immediate profits and not about the medium or long term?
When the cartel/monopoly/monopsony is established, then prices go up unnecessarily. guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
In an ideal world. In the real world, the driven-out player can have no significant assets anymore (at least not enough to make up for losses), and the winner has a thousand means to make the users pay for price-war losses (not the least of which is PR). *Lunatic*, n. One whose delusions are out of fashion.
