MGMT 211 Lecture Notes - Lecture 20: Pet Food, Maxwell House, Jet Fuel
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11. 3. 16 lecture 20: multi-market contact: pet food market. 2 types of pets: dogs and cats; work together to keep cat food/dog food prices high. Cat food sales are increasing but are keeping dog food prices high because their prices are high. You can go phl ord la or phl dha la: the major hub at ord is united. To get jet fuel at o"hare airport, you ha(cid:448)e to deal (cid:449)ith u(cid:374)ited: the major hub at dha is american. You have to deal with american if you want to go elsewhere. Let"s say you (cid:272)a(cid:374) still take a(cid:373)eri(cid:272)a(cid:374) to go to ord a(cid:374)d you (cid:272)a(cid:374) still take u(cid:374)ited to go to dha. Let"s say u(cid:374)ited (cid:272)uts its pri(cid:272)es for flights that go to chi(cid:272)ago. A(cid:373)eri(cid:272)a(cid:374) (cid:449)ould retaliate o(cid:374) flights that go to chi(cid:272)ago. They will also fight you where untied is disadvantaged, so both lose.