"Game Theory"

• Demand for airline tickets fluctuates throughout the year, which affects the price of an airline ticket. Suggest the type of game that may be most appropriate for a specific airline to play to address the differences in demand and elasticity and the resulting impact on profitability. Provide support for your reply.

eActivity

• Use the Internet to research an established company that has recently entered a new market. Determine the company's pricing strategy for the new product or service. Be prepared to discuss.

• From the first e-Activity, propose a short-term and long-term pricing strategy for the product or service you researched including how the strategies would be implemented. Assess how your proposal ultimately maximizes profits.