A) Assuming that there are only 2 airline companies in the U.S. flying between Newark and Miami,

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Question:

A) Assuming that there are only 2 airline companies in the U.S. flying between Newark and Miami, Delta and Continental, what is the ((Nash) Equilibrium) or price that each company in the following matrix will charge? At that price, what are the profits for each company? Note that the first number listed in bold is the profit for Delta and the second number listed that is in italics is the profit for Continental.

B) Can Delta and Continental Collude to increase their profits? Why or why not?

			Continental
		299	399	499
Delta	299	13000 22000	16000 19000	20000 16000
	399	12000 18000	15000 15000	18000 13000
	499	9000 14000	13000 12000	16000 10000