Many times low cost airlines will enter a particular

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118. Many times low-cost airlines will enter a particular city pair market at a much lower price than that offered by the major airline currently serving the market. When the low-cost airline enters, the major airline will then cut its prices, many times at or below those offered by the low-cost airline, hoping to eventually drive the smaller carrier out of its market. This is an example of a company failing to consider __________ effects when planning its strategy.
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