![Working Papers](https://mackinstitute.wharton.upenn.edu/wp-content/uploads/2016/06/Working-Paper-150x100.png)
Firms tend to compete on prices more aggressively when they are in financial distress; the intensified competition in turn reduces firms’ profit margins, pushing them further into distress. Competitors’ aggressive pricing reactions could be attributed to both predatory and self-defensive incentives.…Read More