Table 11-6 LimoZeenz and AirPorter and Are the Only Two

question 186

Multiple Choice

Table 11-6
LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 11-6 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount.
-Refer to Table 11-6.Is there a dominant strategy for AirPorter and if so,what is it?

• A) No, its outcome depends on what LimoZeenz does.
• B) Yes, AirPorter should offer the mid-week discount.
• C) Yes, AirPorter should not offer the mid-week discount.
• D) Yes, AirPorter's dominant strategy is to collude with LimoZeenz.

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Definitions:

Spend More Time Together

Actively allocating increased durations for engagement and interaction with another person or group.

Commitment

The quality of being dedicated to a cause, activity, or relationship, showing willingness to give time and energy to something believed in.

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