What OP is saying is that this isn't competitive, rather it's a way to signal to other participants not to cut their prices. They can't do this outright because

What OP is saying is that this isn't competitive, rather it's a way to signal to other participants not to cut their prices. They can't do this outright because that would be collusion and violate anti-trust laws. OP referenced MAD which is the cold war tactic of mutually assured destruction. Basically, if you nuke me I nuke you back and we all die...so nobody nukes anyone. This is the same but with price competition. If you cut your prices to try to gain market share, I'll cut mine too. You'll gain no market share but you will lose revenue.