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John Lewis frequently announces that the company sets very competitive prices for all its department stores: Each John Lewis shop checks the prices of likely

John Lewis frequently announces that the company sets very competitive prices for all its department stores: "Each John Lewis shop checks the prices of likely rivals in the local area. If a competitor within the area sells the same product that is part of our standard offer at a low price, John Lewis will reduce the price to match the rival's price. We are never undersold." How will a game theorist interpret John Lewis' pricing strategy? Use a numerical example to illustrate your analysis.

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