Price Wars with the AI
Posted: Fri Oct 18, 2013 5:32 am
If the AI keeps lowering prices to capture your market share, you can easily get caught in a price war that spirals out of control if you try to beat their price. If you keep matching the AI price, the AI will often keep lowering prices until you are both selling all the goods that you can move, but no one can make a decent profit on that product.
As soon as I notice that an AI has started selling a product in competition with me, I set prices on that product to produce an overall rating one point lower than the AI's overall rating. In other words, their product will always have a +1 overall rating compared to my rating. This seems to stop them from continuing price drops, and you don't lose much (if any) market share.
It also slows AI sales growth way down, as long as you catch it early.
As soon as I notice that an AI has started selling a product in competition with me, I set prices on that product to produce an overall rating one point lower than the AI's overall rating. In other words, their product will always have a +1 overall rating compared to my rating. This seems to stop them from continuing price drops, and you don't lose much (if any) market share.
It also slows AI sales growth way down, as long as you catch it early.