Given that mutual interdependence can exist along many dimensions, there is no single model ofoligopoly. Rather, there are numerous models based on different behavior, ranging from the naive Cournotmodels to more sophisticated models of game theory. An equilibrium concept that incorporates mutual
Airline Economicsinterdependence was proposed by John Nash (1928-2015) and is referred to as Nash equilibrium. In aNash equilibrium, firms' decisions are their best responses, given what their rivals are doing.2. Describe the economic characteristics unique to the airlines.