-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 5

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?

• A) Only firm A will enter the market.
• B) Only firm B will enter the market.
• C) Neither firm entering is a Nash equilibrium.
• D) The outcome of the game is unpredictable.

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Definitions:

Stereotyping

The act of assigning fixed, generalized traits to individuals or groups based on their membership in a particular category, often leading to oversimplification and bias.

Recency Effect

A memory phenomenon where the most recently presented information is remembered best.

Social Identity Theory

A theory that proposes individuals derive part of their identity and self-esteem from the groups to which they belong.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable condition strengthens a desired behavior.