question archive Suppose the two rival office supply companies Office Depot and Staples both adopt price-matching policies
Suppose the two rival office supply companies Office Depot and Staples both adopt price-matching policies
Subject:EconomicsPrice: Bought3
Suppose the two rival office supply companies Office Depot and Staples both adopt price-matching policies. If consumers can find lower advertised prices on any items they sell, then Office Depot and Staples guarantee they will match the lower prices. Explain why this pricing policy may mean that neither firm will have an incentive to actually offer price discounts.
