It’s a classic economics example.
After several months of a price war, the owners of two pizza parlors on Sixth Avenue have ended their battle, agreeing to both serve a regular slice for $1. The feud began in March, when Bombay lowered its rate to 79 cents. The next morning, 2 Bros. changed its price to 75 cents, which its neighbor soon matched.
“We make a compromise,” Pravin Patel, who oversees Bombay Fast Food/6 Ave. Pizza told The New York Times. “Both guys agreed. Both guys were losing money.”
6 Ave. Pizza is just a few feet south of 2 Bros. Pizza between West 37th and West 38th streets.
The agreement was settled on the sidewalk between the two proprietors.
“I said, ‘We lose money, and the customer wins,'” Patel told the Times. “He said, ‘You’re right.'”