USE OF GAME THEORY TO MAXIMIZE PROFITS

1. Describe the change in Southwest Airlines boarding process. 2. What was Southwest’s main goal introducing the early-bird check-in? 3. Explain how Southwest Airlines used the game theory approach to increase its profits. • What is the outcome of the game involving early-bird check-in? • Identify what is the passengers’ dominant strategy. • Determine why travelers face the Prisoner’s Dilemma with the early-bird check-in process. 4. Analyze the advantages and disadvantages of the early-bird check-in process for Southwest Airlines. 5. Suggest ways in which other companies, or the company you work for, can utilize similar game approach to maximize profits.