Roland's Barber Shop and Charley's Barber Shop Are Both Located

Multiple Choice

Roland's Barber Shop and Charley's Barber Shop are both located in the business district of a certain town. Roland estimates that if he raises the price of a haircut by $1, he will increase his market share by 7% if Charley raises his price by the same amount; he will decrease his market share by 2% if Charley holds his price at the same level; and he will decrease his market share by 7% if Charley lowers his price by $1. If Roland keeps his price the same, he will increase his market share by 4% if Charley raises his price by $1; he will keep the same market share if Charley holds the price at the same level; and he will decrease his market share by 4% if Charley lowers his price by $1. Finally, if Roland lowers the price he charges by $1, his market share will increase by 8% if Charley raises his prices by the same amount; he will increase his market share by 4% if Charley holds his price at the same level; and he will increase his market share by 2% if Charley lowers his price by $1. ​
If neither party is willing to lower the price he charges for a haircut, what strategy should they choose?
​

A) Roland should hold the price. Charley should hold the price.
B) Roland should hold the price. Charley should raise the price.
C) Roland should raise the price. Charley should raise the price.
D) Roland should raise the price. Charley should hold the price.
E) The game is not strictly determined.