What if companies....?

Question

reduced their prices instead of having sweepstakes, contests where only a few people, the winners, benefit?

Answer 1

That would be great for all the consumers but not so great for all the money hungry businesses. I guess if the company sold enough of the low cost product it would give them a large profit, but why would they bother with that when they can do just what you are talking about. Set the price where the like, then have a contest that will produce even more profits.