The Low Cost Model or the Return of Price Competition

While consumers worry about their standard of living, the recent publication of the Beigbeder report on the low cost model draws our attention. The report proposes to use this economic model as a means for reducing prices and thus to increase purchasing power. For any competition specialist, this report presents an extra, and probably less materialistic, interest. It addresses competition under, what we could called, its "primitive" and original form. It refers to price competition, which means competition before brands, advertising and multi-option products