The Starlight Shuttle War
Choose fares against a rival and identify best responses and a Nash equilibrium.
Open activityAct V · Different Stages · Module 16
The Boardroom
Oligopoly and game theory
31 slides · Hubbard & O'Brien, chapter 14.
The story
Where this fits in Marginal Falls
Two shuttle operators choose fares, and each operator's profit depends on its rival's decision. The boardroom introduces strategic interdependence: a sensible choice cannot be assessed without asking what the other firm will do.
A question to take into class
Why can the firms reach an outcome that neither would choose if they could jointly commit to fares?
From the slides to the classroom
Activities used in this module
Activities open at marginalfalls.com. Students join using the room code supplied by their instructor.