The Price Match Game Each firm promises to match any competitor’s posted price and give customers 10% of the difference in posted prices. If Home Depot posts a Low Price of $800 and Lowe’s posts a High Price of $1,000, then customers are better off buying from Lowe’s because Lowe’s matches Home Depot’s posted price and gives customers 10% of the difference. Thus, when Home Depot lowers its price, Lowe’s will get all of the customers and the profits! Similarly, if Lowe’s lowers its price and Home Depot does not, Home Depot gets all the profits. In this game, posting a High Price is always more profitable than posting a Low Price! Thus, High Price is a dominant strategy and the equilibrium is {High Price, High Price}.