CASE STUDY: USE OF GAME THEORY TO MAXIMIZE PROFITS

The following article describes the unique boarding process used by the Southwest Airlines.

Article - Presh Talwalkar (2015) Southwest Airlines boarding and game theory.

Use this article and at least three (3) others to answer the following questions in 5-7 pages:

1. Describe the change in Southwest Airlines boarding process.

2. What was Southwest's main goal in introducing the early-bird check-in?

3. Explain how Southwest Airlines used the game theory approach to increase its profits.

• What is the outcome of the game involving early-bird check-in?
• Identify what is the passengers' dominant strategy.
• Determine why travelers face the Prisoner's Dilemma with the early-bird check-in process.

4. Analyze the advantages and disadvantages of the early-bird check-in process for Southwest Airlines.

5. Suggest ways in which other companies, or the company you work for, can utilize similar game approaches to maximize profits. Note: One of your references should help provide a rationale as to why this is a good approach for this company and needs to have been published within the last 6 months.