Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 14A, Problem 2E
To determine

To ascertain: Whether the overbooking of business class service will increase or decrease.

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Empirical evidence from the US airline industry suggests that fare wars are more likely when carriers have excess capacity, caused by GDP growth falling short of its predicted trend. Fare wars are also more likely during the spring summer quarters, when more discretionary travel takes place. Explain how these two observations are consistent with the theories presented in Section 9.2
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Chapter 14A Solutions

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

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