Airline Competition
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- Each round, each of two airlines chooses how many flights to schedule on a new route
- Each pays same cost per flight scheduled
- Revenue per flight depends on total number of flights scheduled
- First, LeadAir chooses how many flights to schedule
- FollowAir learns LeadAir’s choice, then chooses how many flights to schedule
- After both have chosen number of flights, revenue per flight determined, profits realized
Lead Air
- Use sliders to investigate how payoffs depend on flights scheduled by each airline.
- Moving top slider shows how each airline’s profits change as LeadAir flights vary
- Displayed profits assume the number of FollowAir flights shown on bottom slider
- Moving bottom slider shows how each airline’s profits change as FollowAir flights vary
- Displayed profits assume the number of LeadAir flights shown on top slider
- To schedule the number of flights shown in the top slider, press Schedule Flights.
- Wait for FollowAir to choose …
FollowAir
- Top slider locked at number of flights chosen by LeadAir
- Moving bottom slider shows, given number of flights chosen by LeadAir, how each airline’s profits change as FollowAir flights vary
- To schedule the number of flights shown in the bottom slider, press Schedule Flights.