They may not raise their prices right after major competition leaves, but by removing the competition, they do increase traffic.
So, even though they may not raise prices, they make it up on volume.
So, even though they may not raise prices, they make it up on volume.
Actually, I have never seen a good example of this phenomena in the real world. People say it is true about Wal-Mart, but they don't raise their prices after they kill the competition, which defeats the thesis.