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American Airlines and United Airlines compete for customers on flights between Chicago and Los Angeles. The table below is the profit matrix for the airlines'

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American Airlines and United Airlines compete for customers on flights between Chicago and Los Angeles. The table below is the profit matrix for the airlines' static, one-period prisoners' dilemma game in which each firm's only possible actions are to produce a large output (fly 64 thousand passengers per quarter) or a small output (fly 48 thousand passengers per quarter (Note: Quantities are in thousands of passengers per quarter; (rounded) profits are in millions of dollars per quarter.) mm '1; = '15 = 43 4.1 3.8 4:; = M W 4.1 5.1 mm.- s.1 4.6 q: = 48 3.8 4.6 Could American Airlines incentivize United to cooperate using a grim strategy? 0 yes, but only if they are playing the game in 3 rounds or more. 0 No 0 yes, but only if they are playing the game in a finite number of rounds. 0 yes, but only if they are playing the game indefinitely

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