In the late 1990s, Southwest Airlines and United Airlines competed in some but not all markets. United's announcement of plans to move into some of Southwest's other routes caused Southwest to publicly threaten retaliation. United then backed down and Southwest had no reason to attack. The result was better performance for both firms. This is an example of _____.

Question

Quizplus · Accepted Answer

Mutual forbearance occurs when competing firms avoid aggressive competition against each other in certain markets to maintain stability and improve performance for both parties.

In the Late 1990s, Southwest Airlines and United Airlines Competed