In the spring of 1994, Northwest Airlines took the independent action of reducing fares on its flights. Other competing airlines quickly matched the fare cuts. These actions might be interpreted as:
A) a noncooperative game.
B) a cooperative game.
C) a constant sum game.
D) a competitive game.

Question

Quizplus · Accepted Answer

This scenario is an example of a noncooperative game, where each airline independently decides its pricing strategy without collaborating with others, leading to competitive behavior.

In the Spring of 1994, Northwest Airlines Took the Independent