In an oligopoly, why might firms choose to follow a competitor's price change instead of setting their own price independently?

In an oligopoly, a few firms dominate the market, and their decisions can significantly impact each other. When one firm changes its price, others might follow to avoid losing customers. This happens because if one firm lowers its price, customers may switch from the higher-priced competitor, leading to a loss in sales for that competitor. For example, if a car manufacturer reduces its prices, other manufacturers may quickly match that price to keep their customers. By following the price change, firms can maintain their market share and avoid price wars that could hurt all players in the market.