An American West Airlines Flight from Dallas to Houston Was

question 162

Multiple Choice

An American West Airlines flight from Dallas to Houston was fully booked, and the flight tickets were more expensive than that of the nearly empty American West flight from Chicago to Phoenix. This is an example of service pricing.

• A) unit-based
• B) demand-based
• C) supply-based
• D) cost-based
• E) customer-based

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, representing a state of optimal strategy among all participants.

Mixed Strategies

In game theory, strategies involving randomizing choices to make opponents indifferent between their own possible actions.

Maximin Strategy

Strategy that maximizes the minimum gain that can be earned.

Maximin Strategy

A decision-making strategy in which the decision-maker aims to maximize the minimum gain or minimize the maximum loss, often used in game theory and decision theory.