Comment by skksjsnaahs

Suppose there are only two competitors and the barrier to entry for a third is high. You profit $287.47 per unit with partial market share. If you try to charge $200 so you only make $187.47 per unit, your competitor will also lower the price to $200 and you will both end up with the same market share but less profit. Even if the two participants in the market never communicate, the obvious strategy in a two-player game is keep the high price.