The "Flanking in a Price War" article

Article Main Points Summary The "Flanking in a Price War" article describes a study conducted in the 1980's testing the pattern of price sensitivity for stock-up grocery goods (products that can be stockpiled) and nonstock-up grocery goods (perishables that can not be stockpiled) in the Quebec grocery market. A covariance design within a Bayesian decision framework was used and provided an indicator as a stop rule for the study. The results of the study were …

…and allowed for discriminating use of price cuts. This made the experiment easy to test and was successfully applied. When the company applied these techniques, it was able to improve its financial situation. It also showed the benefits of cooperating over competing. Steinberg unsuccessfully tried to put everyone else out of business. Had they approached their ambitions, not through competition but through cooperation and collaboration, Steinberg indeed may have been the sole remaining market player.