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 1% 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 1% if Charley lowers his price by $1.

Is the game strictly determined?

If neither party is willing to lower the price he charges for a haircut, what strategy should they choose?

Roland should __________ the price.

Charley should __________ the price.