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In a repeat-play game, Airline 1 has high ticket prices. Airline 2 then raises its ticket prices, which results in both airlines reaping the benefits
In a repeat-play game, Airline 1 has high ticket prices. Airline 2 then raises its ticket prices, which results in both airlines reaping the benefits from high ticket prices. After several months, Airline 1 decides to deeply reduce ticket prices to attract more customers. Within a month, Airline 2 then reduces ticket prices to retaliate against Airline 1. This goes on indefinitely and shows two airlines playing out a A) Dominant strategy B) Tit-for-tat strategy C) Prisoners Dilemma A only B only C only A and C B and C
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