Bunnings Warehouse have an offer “Find a cheaper price on one of our items elsewhere and we’ll beat it by 10%”. At first glance, this seems to be a good thing for consumers. A little game theory and you see why this offer is deceptive and misleading! If Paul’s Warehouse, a competitor, knows about this offer, they won't offer lower prices than Bunnings. So Bunnings' offer/threat to beat prices encourages Paul’s Warehouse to collude with Bunnings in keeping prices high…Unless, of course, Paul's Warehouse feel they have a realistic chance of making Bunnings go bankrupt.
Bunnings actions are typical of a large established business. They are using their power and large cash reserve (which will help them ride out difficulties) to make Paul recognise that he cannot afford to compete with them on price. The ACCC need to stop this anti-competitive behaviour immediately.
In the mean time, Caveat Emptor. Buyer beware.
