Two airlines (United, American) each offer 1 flight from New York to Los Angeles. Price = $/pax, Payoff = $/flight. Each plane carries 500 passengers, fixed cost is $50000 per flight, total demand at $200 is 500 passengers. At $400, total demand is 250 passengers. Passengers choose cheapest flight. Payoff = Revenue - Cost

Formulate the Payoff Matrix for the Game and find equilibrium. Include explanation to your answer how do you get it