1. The brand company very often leaves the price intact. They can still make some money because of brand loyalty. Of course, they will have to scale back their inventory.
2. guess because of 1. not sure though.
3. life cycle managment. that's a big topic. to name a couple of tactics: you can try to screw the generic companies by filing citizen petitions, or you can push out a modified and supposedly better product and try to convert the market. But very often the brand company will just bite the bullet and move on.
