In a Nash equilibrium scenario between Gary's Gym and eFitness, what would happen if Gary's Gym decided to increase its prices?

In a Nash equilibrium, each player makes the best decision they can, considering what the other player is doing. If Gary's Gym decides to increase its prices, it might attract fewer customers because people could choose eFitness if it remains cheaper. If eFitness sees that Gary's Gym is losing customers, they might lower their prices to attract more clients, which could lead to a price war. This means both gyms might end up in a situation where they have to adjust their prices continuously to stay competitive, potentially hurting their profits. For example, if Gary raises prices and loses members, eFitness could gain those members by offering lower prices, leading to changes in both gyms' strategies.