1. It will be unethical if one is going to step on the shoulders of a colleague or a competitor and the best way to beat the competiton is to offer something unique instead of trying to see who can offer the lowest price before going out of business. King Fisher airlines is a classic example where it provided best services and even increased rates of fares when the whole airline industry is undergoing recession.

2. If a company has a a unique feature or service, than it can take the competition off pricing, and while the competitors will be trying to bring the prices down to combat the competitors. If one has quality one can go ahead and increase the price as one will be attracting the people with value-added products & services and one will not be required to offer rock bottom pricing.