This Question Refers to the Payoff Matrix Below Where Profits $\text { United }$

question 29

Essay

This question refers to the payoff matrix below where profits for United Airlines and American airlines are shown for alternative pricing strategies. The airlines can either hold prices where they are or engage in price cutting activity.


                                  $\text { United }$
$\begin{array}{l}\begin{array} { l } \\\text {American} & \text { hold rates}\\\\ & \text { cut rates}\end{array}\begin{array} { l } \hline \text { hold rates } & \text { cut rates } \\\hline \mathrm{U}=100 & \mathrm{U}=160 \\\mathrm{~A}=100 & \mathrm{~A}=60 \\\hline \mathrm{U}=80 & \mathrm{U}=70 \\\mathrm{~A}=150 & \mathrm{~A}=70\end{array}\end{array}$
Does either airline have a dominant strategy? If so, what is it?

---

Definitions:

SELL Sequence

A structured sales strategy emphasizing specific steps such as Show, Explain, Lead, and Lock to close a deal.

Salesperson

An individual who sells products or services to customers, often directly, in order to generate revenue for a business or company.

Benefits

Advantages or positive outcomes that result from the use of a product or service, often used as selling points in marketing.

Emotional Dissonance

A state of conflict between publicly displayed emotions and internal feelings, often experienced by employees in service roles.