in a crowded market widely differing prices will be charged for products that are essentially the same as each other

as a market becomes less crowded as suppliers leave, the profits of the remaining suppliers will tend to decrease

each supplier in a crowded market will try to convince consumers that its product differs significantly from its competitors' products.

when consumers are unable to distinguish the products in a crowded market, consumers will judge that the higher-priced products are of higher quality

suppliers in crowded markets will have more incentive to reduce prices and thus increase sales than to introduce innovations that would distinguish their product from their competitors' products