The study looked at how prices are set in a competitive market. The traditional model says prices should be equal to costs and not change with the number of competitors, but this doesn't match real-world results. The researchers tested a new model and found that prices do change with the number of competitors. When there are two competitors, the traditional model doesn't work well, but with three or four competitors, it starts to predict prices accurately after some learning. This suggests that people's limited ability to make decisions might explain the differences in pricing behavior.