Price war is a term used in business to indicate a state of intense competitive rivalry accompanied by a multi-lateral series of price reductions. One competitor will lower its price, then others will lower their prices to match. If one of the reactors reduces their price below the original price cut, then a new round of reductions is initiated.
a situation in which two or more companies each try to increase their own share of the market by lowering prices. rincipal: The amount of money borrowed in a debt agreement and the amount upon which interest is calculated.