[Pan_Yans Wife]

Initially their prices may match, but eventually, don't they decrease in tandem?

Perhaps I am thinking of "high end" gadgets like plasma screen televisions, but over time, doesn't the price level off to what the market will bear?

[Tempest]

With electronics it usually does. But that's usually because they're luxury items.

You'll tend to notice that with services, I.E. - Cable, Sattelite, Cell Phone, etc. there's no real apperent competition just across the board agreed to price fixing. Also with staple supplies you don't see much competition unless it's some exotic varient of that staple item liek Gruyre cheese or bottled water in a fancy bottle.