This is referred to as a deadweight loss. A price searcher may or may not be productively efficient, depending on cost conditions. If a market is a natural monopoly, production by a single firm is preferred because average costs are minimized. However, the price elasticity of demand is substantially reduced relative to what it would be under more competitive conditions, resulting in greater allocative inefficiency if the firm is not regulated. Thus, it is possible for a greater range of consumer tastes and preferences to be satisfied.
Inefficiencies associated with price searchers are often minimal.
Competitive advantages among price searchers are frequently short lived.