two firms competing with one another in prices

两家互相打价格战的企业
can have a Prisoners' Dilemma aspect about it.

可能会陷入囚徒困境
Why? Because no matter how the other firm, your competitor, prices

为什么因为不管你对手怎么定价
you might have an incentive to undercut them.

你总有想削弱他们的动机
If both firms behave that way,

如果双方都采取这种策略
prices will get driven down towards marginal cost

那么价格将会下降到边际成本
and industry profits will suffer.

行业利润将会遭受损失
In the first case, if everyone shirks

在第一个案例中如果大家都偷懒
you end up with a bad product.

成果会糟得不堪设想
In the second case, if both firms undercut each other,

在第二个案例中如果两家企业互相削弱
you end up with low prices,

最终会压低价格
that's actually good for consumers but bad for firms.

这对消费者有利但对企业不利