what is mean by price wars

I think price war is competetion between different copmanies for prices.One company lowers it's product's price to have more sale than other's in turn the other company lowers the price even lower.In this war everyone is benefited including the companies and mostly the costumers!

I think it means where two companies are competing against each other for the same customers with similar products. Both continue to drop prices in order to win over the customer and get them to buy their products. One example could be with gas stations. On one corner you have Gas station A who sets their price, then Gas station B on the other corner drops the price of their gasoline below that of Gas station A. Then, in order to try to gain more customers, Gas station A would drop their price, and so on and so forth.

The biggest example of a price war would be the cost of gas a few months back, when prices were almost 4 dollars a gallon. If the gas station had a price of $3.89, and the gas station down the road had a price of $3.76, then the station with cheaper gas is causing a price war, offering the same product for a cheaper amount. Even though it's such a small diffrence in times like this, even a small amout can cause so many problems.

It is the total expenditure that the countries had to bear.
This expenditure is borne by the defeated country.

Price war is a situation when two or more rival companies compete with each other though prices i.e. if one company reduces prices, the other follow it by reducing further. The disadvantages of war include, the value is being transferred to the consumers rather than the producers. Not only that, there is a limit up to which prices can be reduced known as the marginal cost. Once that is reached, the companies cannot distinguish their products.
So in short, price wars is disadvantageous for firms. The best way a firm can compete with another is to focus on quality rather than price.

I guess the price war is one means of competition to attract customers in the same industry. Companies lower their product prices or give promotion activities when the price may stay the same but with additional service provisions, or favor, say small gifts, little by products, or spareparts.

Customers need to be really smart to compare with the products. Sometimes, low prices is accompanied by infeior products, or inferior technology, which is not what we want.

Price wars hurt the companies too. The low prices, if beyond a reasonal limit, will damage its potential development potential, hindering future benefits of itself as well as the industry as a whole.