Earlier quoted context omitted.
It's worth expanding on this. Because I think it gets lost in the rhetoric, whether deliberately or by accident. A profit-maximizing firm sets prices that maximize its expected profit. This seems tautological, but it's important and I think it's implications aren't appreciated. If your prices are already beating the competition, and you already have a solid reputation for low prices, there is no incentive to continue…
The reason that this tends to lower prices for consumers is that these innovations rarely stay confined to the companies that invent them. If this lowers costs for amazon to fulfill orders, then these techniques tend to get adopted by their competitors. And once adopted by competitors, when everyone's margins have increased, these companies do compete on price. This process doesn't happen immediately but it does happ…
Can a competitor actually catch up without this data?