b. Now, suppose the two airlines play this game twice. And suppose each airline can play...

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b. Now, suppose the two airlines play this game twice. And suppose each airline can play one of two strategies: it can either play always charge the low price or tit for tat. In the latter, it starts off charging the high price in the first period, and then, in the second period, it does whatever the other airline did in the previous period. Write down the payoffs to United from the following four possibilities: i. United plays always charge the low price when Air "R" Us also plays always charge the low price. United's payoff: $ ii. United plays always charge the low price when Air "R" Us plays tit for tat. iii. United plays tit for tat when Air "R" Us plays always charge the low price. United's payoff: $ United's payoff: $ b. Now, suppose the two airlines play this game twice. And suppose each airline can play one of two strategies: it can either play always charge the low price or tit for tat. In the latter, it starts off charging the high price in the first period, and then, in the second period, it does whatever the other airline did in the previous period. Write down the payoffs to United from the following four possibilities: i. United plays always charge the low price when Air "R" Us also plays always charge the low price. United's payoff: $ ii. United plays always charge the low price when Air "R" Us plays tit for tat. iii. United plays tit for tat when Air "R" Us plays always charge the low price. United's payoff: $ United's payoff: $

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i Both Airlines Play Always Charge the Low Price In this scenario both United and Air R Us always ch... View the full answer