Mapleflot and EastJet operate national airline networks. During low traffic periods, both airlines offer greatly discounted air ticket prices and generally match each other's prices. These "price wars" do not increase their market share or attract many new customers. It seems the only winners are consumers who get to travel at less than full cost during low traffic periods.

(a) Draw an appropriate model(s) to illustrate this competitive behavior and explain why the two airlines never seem to learn the futility of their actions.

(b) How would you advise an airline to respond to this repeated situation?