Answer
Two factors: because firms know how annoyed their customer would get if they changed their price a lot, some customers would even feel it to be unfair because other customers get things at lower prices than they did. Second: because firms are scared that their rivals might match their price cut thus induce price war.
Work Step by Step
Two factors: because firms know how annoyed their customer would get if they changed their price a lot, some customers would even feel it to be unfair because other customers get things at lower prices than they did. Second: because firms are scared that their rivals might match their price cut thus induce price war.
