A Price War is a competitive strategy in which competitors purposely lower the prices of their goods and services to gain market share. It’s often seen in retailing and other highly competitive industries, such as airlines, telecommunications, or online groceries. In a price war, companies can leverage economies of scale by ramping up production and lowering costs, allowing them to price their products and services at levels that give customers savings while still creating profits for the company. A price war can be beneficial for consumers, but it can hurt business margins if not managed correctly. Investors should watch the industry and assess which players will come out on top in the long run in order to make informed investment decisions.