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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Doric co.
“High levels of discretion are required in the search process to protect the value of the business from adverse competitive action. Otherwise, an interested and dominant competitor may open a price war in order to force down prices and hence the value of the fridges division prior to a bid.”
Sir I don’t understand this one bit! How can a competitor force the price down by itself? Price war as in how?
If the competitor reduces prices then other companies are forced to reduce their prices or else lose sales.
