If you are a pimp, and the pimp across town cuts all your prices by five bucks, that would be bad, right?
I mean, not only is he stealing your customers, but he's making it so that everybody makes less money per night, including him.
Unless he's worked out some kinda micro-payment system where he makes up for the five buck discount for layered services and upgrades or something.
So maybe you kill him, if you are in a movie, or maybe you buy him out so you can control prices for everyone's benefit and monopolize the market, or maybe you spy on him and figure out his micro-payment system or something, but the worst thing you can do for everybody is lower your prices by more than five bucks.
Unless you are willing to wage some kind of "cheap hookers have more personality" spinwar.