It's commonly viewed as the only equilibrium outcome that each firm earns zero profit in the homogeneous product Bertrand game with constant marginal cost.

According to the report, increasing imports in concentrated industries from zero to 25 percent of domestic sales reduces oligopoly profit mark-ups by 8 percent through lower prices to consumers.

The only way that companies can prosper in these markets is to cut costs relentlessly and accept profit margins close to zero.