Describe an oligopolistic competition. Why do price wars sometimes result in this type of competition?

When a market is characterized by oligopolistic competition, only a few firms dominate. Firms typically change their prices in reaction to competition to avoid upsetting an otherwise stable competitive environment. Examples of oligopolistic markets include the soft drink market and commercial airline travel. Sometimes reactions to prices in oligopolistic markets can result in a price war, which occurs when two or more firms compete primarily by lowering their prices. Firm A lowers its prices; Firm B responds by meeting or beating Firm A's new price. Firm A then responds with another new price, and so on.