Find the pure nash equilibrium for fare

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Question: Two airlines serve the route ORD to LAX. Naturally, they are in competition for passengers who make their decision based on airfares alone. Lower fares attract more passengers and increases the load factor (the number of bodies in seats). Suppose the bimatrix is given as follows where each airline can choose to set the fare at Low = $250 or High = $700:

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Reference no: EM131445644

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