Besanko, Chapter 8 Homework, ADAPTED End-of-Chapter Questions

3.(2 points; 1 point each)

a.In the US, how does the magnitude of consumer switching costs affect the intensity of internal rivalry in the US commercial airline industry?

b.How does the magnitude of consumer switching costs affect the intensity of entry into this industry?

4.(2 points; 1 point each)

a.How do exit barriers affect internal rivalry in theUS commercial airline industry? [Hint: Think of your project.]

b.How do exit barriers affect entry into this industry?

10.(2 points; 1 point each):

a.Coopetition often requires firms to communicate openly. How is this different from collusion?

b.How can antitrust enforcers distinguish between coopetition and collusion in the US commercial airline industry?