Dominant Strategy - Airline Example
Profits are shown for united airline and american airline, the airline can either hold prices where they are or cut prices. does either airline have a dominant strategy? Explain in detail: see attachment© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/microeconomics/dominant-strategy-airline-example-7gle
...strategy because if American chooses stable prices, it is better for United to choose to lower prices (U=160) then to choose stable prices (U=100). If American chooses to lower prices it is better for United to keep stables prices (U=80) then to lower prices (U=70). Therefore, ...