CASE STUDY: USE OF GAME THEORY TO MAXIMIZE PROFITS
The following article describes the unique boarding process used by the Southwest Airlines.
Article - Presh Talwalkar (2015) Southwest Airlines boarding and game theory.
Use this article and at least three (3) others to answer the following questions in 5-7 pages:
1. Describe the change in Southwest Airlines boarding process.
2. What was Southwest's main goal in 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 approaches to maximize profits. Note: One of your references should help provide a rationale as to why this is a good approach for this company and needs to have been published within the last 6 months.