>You obviously can't just drop prices on 10 thousands socks of yours, because that would still allow your competitor to stay in business
Ah sorry, I misunderstood. I thought you were suggesting they'd have to drop prices on a range of different products.
>What's there to prevent a rich investor from entering the market and competing?
The fact that there isn't an infinite supply of rich investors queueing up to disrupt markets. And that there are likely much better investment opportunities than entering an expensive price war just to gain a foothold in a newly competitive market (at which point company C can enter, and reap the same benefits without the inflated upfront costs).
Ah sorry, I misunderstood. I thought you were suggesting they'd have to drop prices on a range of different products.
>What's there to prevent a rich investor from entering the market and competing?
The fact that there isn't an infinite supply of rich investors queueing up to disrupt markets. And that there are likely much better investment opportunities than entering an expensive price war just to gain a foothold in a newly competitive market (at which point company C can enter, and reap the same benefits without the inflated upfront costs).