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Gas station with a green-and-white canopy and a tall green price sign showing fuel types and prices, plus a shop in the background.

Why a price you can’t raise starts high

12 hours ago • by Harry J. Paarsch, Karl Schmedders in Strategy • 6 min read

When firms can cut prices freely but struggle to raise them, they start higher to insure against being trapped tomorrow – even in competitive markets. ...

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