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There are exceptions of oligopolies that engage in price wars, for example AMD and Intel, semiconductor producers, both use fierce price lowering tactics because when one of them decreases their price of a product the other has nothing else to do but follow in order not to loose a big market share. Intel and AMD price wars are beneficial to the consumers but not to the companies which each year miss their target revenues and get lower profits. Relatively stable prices under oligopoly, which are called sticky prices or rigid prices, is a strong feature of this market structure and this essay will try to explain why such prices exist...
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