Table $14-2$ shows the payoff matrix for Wal$-$Mart and Target from every combination of pricing strategies for the popular PlayStation $3.$ At the start of the game each firm charges a low price and each earns a profit of $$7,000.$

Refer to Table $14-2.$ Suppose Wal$-$Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?

Group of answer choices

to signal to each other not to charge below the current low price

to signal to each other to share the market equally

to signal to each other that they will not hesitate to initiate a price war

to signal to each other that they intend to charge the high price Table $14-2$

Table $14-2$ shows the payoff matrix for Wal$-$Mart and Target from every combination of pricing strategies for the popular PlayStation $3.$ At the start of the game each firm charges a low price and each earns a profit of $\backslash (\backslash$$ $7,000\backslash ).$

Refer to Table $14-2.$ Suppose Wal$-$Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?

to signal to each other not to charge below the current low price

to signal to each other to share the market equally

to signal to each other that they will not hesitate to initiate a price war

to signal to each other that they intend to charge the high price