and advanced economic theory says that basic economic theory is crap, what you consider “basic economic theory” is woefully outdated and has never been backed by any evidence.
as for the supply and demand crap, it really just boils down to the prisoner’s dilemma,
1: A lowers prices & B lowers prices = lower profits for both
2: A lowers prices & B does not lower prices = A has medium profits, B goes broke
3: A does not lower prices & B lower prices = A goes broke, B has medium profits
4: A does not lower prices & B does not lower prices = both have high profits
and remember, the people running A and B have taken some basic courses in math and logic
and advanced economic theory says that basic economic theory is crap, what you consider “basic economic theory” is woefully outdated and has never been backed by any evidence.
as for the supply and demand crap, it really just boils down to the prisoner’s dilemma,
1: A lowers prices & B lowers prices = lower profits for both
2: A lowers prices & B does not lower prices = A has medium profits, B goes broke
3: A does not lower prices & B lower prices = A goes broke, B has medium profits
4: A does not lower prices & B does not lower prices = both have high profits
and remember, the people running A and B have taken some basic courses in math and logic