Best-Practice Tactics, Game Theory, and Pricing Techniques and Analysis

Answer the following 4 questions listed below based on the attached document. Please number each answer.

1. From the scenario for Katrina’s Candies (scenario attached), determine the importance of predicting the pricing strategies of rival firms in an industry characterized by mutual interdependence.

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2. Examine the common price setting strategies of airlines that use game theory.

3. Predict the potential effects of such pricing strategies on the demand for airline seats, and conclude the resulting impact on the profitability of the airlines.

4. What airline company use pricing strategies to their advantage.

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