Suppose instead of just a Low Price Guarantee the firms offer something like a 90 Day 120% Low Price Guarantee. "If you find it cheaper here or anywhere else within 90 days we'll refund the difference plus 20%."
With this sort of arrangement the firms may well be able to change the payoffs sufficiently so that charging the High price is a dominant strategy as in the game to the right. A 90 Day 120% Low Price Guarantee is a fairly strong promise to the other firms that prices won't drop very often or far and not on items that sell or sold well. They always seem like they benefit the customer, but they may just be devices to aid collusion.
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