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