fare competition

Fare competition occurs when multiple transportation providers, such as airlines, trains, or ride-sharing services, compete by adjusting their prices to attract customers. If one company lowers its fares, others may follow to remain competitive, leading to better prices overall for consumers. Conversely, if prices rise, some providers might reduce or eliminate discounts to protect profits. This dynamic helps balance supply, demand, and profitability. Fare competition encourages companies to improve service quality and efficiency while offering better pricing options to travelers.