Table $14-2$

$\backslash$table$[[,,$Wal$-$Mart's $($W$)$ Choices$],[,,$High Price,Low price$],[\backslash$table$[[$Target$\text{'}$s $($T$)],[$Choices$]],$High Price,$\backslash$table$[[$W: $$10,000$ profit$],[$T: $$10,000$ profit$]],\backslash$table$[[$W: $$5,000$ profit$],[$T: $$14,000$ profit$]]],[$Low price,$\backslash$table$[[$W: $$14,000$ profit$],[$T: $$5,000$ profit$]],\backslash$table$[[$W: $$7,000$ profit$],[$T: $$7,000$ profit$]]]]$

Table $14-2$ shows the payoff matrix for Wal$-$Mart and Target from every combination of pricing strategies for the popular PlayStation $4.$ 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

$q,$ price offered by any competitor. What is the purpose of such a strategy?

A$)$ to signal to each other not to charge below the current low price

B$)$ to signal to each other that they intend to charge the high price

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

D$)$ to signal to each other to share the market equally