When an Airline Reduces Its Fares, Other Airlines Typically Match

question 172

Essay

When an airline reduces its fares, other airlines typically match the action.But when an airline increases its fare, other airlines do not follow suit.Which oligopoly model cartel, price leadership, or kinked demand best fits the airline industry as described? Justify your choice and explain why the other models are less appropriate.

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Definitions:

Alcohol Problem

A situation characterized by the excessive or harmful use of alcohol, leading to physical, social, or psychological issues.

Dramaturgical Approach

A perspective in sociology that views social interactions as theatrical performances, where individuals are actors on metaphorical stages.

Emic

An approach or perspective that focuses on understanding cultural behavior and beliefs from within the cultural context itself, emphasizing insider views.

Theater Approach

A strategy or methodology applied in military, diplomatic, or other operations, considering the specific characteristics and requirements of a particular geographical or situational domain.