With price matching guarantee: Best Denki can adopt the following strategy: Set high price (H), and at the same time adopt pricematching guarantee. By doing so Best Denki can reduce the benefit Courts canachieve from setting low price when Best Denki sets highprice. When Courts chooses L Best Denki must match thelow price when consumers find it out so both ends upcharging low price equal profit of 200. When Courts chooses H Best Denki chooses H (noneed to match) equal profit 300. It is better for Courts to stick with H