Question
Two airlines, United airline and southwest, are deciding to choose whether Nashville or Greensboro should be their major hub. Given the diagram here, find all
Two airlines, United airline and southwest, are deciding to choose whether Nashville or Greensboro should be their major hub. Given the diagram here, find all equilibria of this game. What is this called?
| United airline | |||
| Atlanta | Chicago | ||
| Southwest | Nashville | $50M , $50M | $95M , $70M |
| Greensboro | $70M , $95M | $45M , $45M |
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Essentials of Economics
Authors: Bradley Schiller, Karen Gebhardt
10th edition
125923570X, 978-1259235702
