Pricing in a monopoly context: the game
You have been put in charge of an airline and have to choose a pricing strategy for your planes departing in three months’ time.
As in the tutorial, you start with an initial cash of €50,000 and your goal is to make a profit, that is to finish the game with more than €50,000. You will have to take three pricing decisions while having a fixed capacity of seats to sell.
In the first year of this game, you have 1600 tickets for sale, corresponding to 4 round-trips of a plane which seats 400. This is more than in the tutorial (only 3 roundtrips there). You may adjust the number of roundtrips in the following years.
Manage your prices
In this scenario, the game runs over three years, each with both a peak and an off-peak period (two rounds per year). For each round, as in the tutorial, you have seats for sale and have to choose the prices at three dates before departure. Note that that the profits (or losses) are added together at the end of the game.
The game runs over three years (two rounds per year) (Click to expand).
Starting in year 2, new features will appear each year and you’ll have to take strategic decisions prior to your pricing decisions. These decisions will impact your airline capacity and its costs for both the peak and off-peak rounds.
Hints and instructions are provided at each stage of the game.
You can replay the game as many times as you want.
Play the game
Are you ready? In a new tab or browser window, log into the pricing simulation platform and create a new game in duopoly (right-click on the pink Launch button at the bottom of this page).
LAUNCH A NEW GAME SESSION (right click to open in a new tab)
In order to save your progress and retrieve your game in case of interruption, you need to set up a personal ID and password:
- click on the Edit Profile menu
- in the Edit Login tab, enter your ID, then click on the Validate button
- in the Edit Password tab, enter your password (twice), then click on the Validate button
- in the Edit Team Name tab, enter the name of your airline, then click on the Validate button
- click the Go back to the game big blue button… and just play!
Again, playing without too much concern about the outcome is a good strategy to learn how the demand will react to your choices. As in the tutorial, you can use the back button to change your decisions.
Note that the behaviour of each individual customer is randomly simulated; as a consequence, the same action may result in a slightly different outcome.
The game should take no longer than 30 minutes from start to finish, and you should be able to make a profit by the end of the three years.
Beware! Your goal is to make a profit over the 3 years, which means that your overall score at the end of the game must be over €50,000 (your initial cash position).
Did you find the winning strategy? Jump to the next step and discuss this with your fellow learners!
This game is provided by our partner Economics Games: Online Classroom Games for Teaching Economics (http://economics-games.com/)
© By ENAC - Christophe Bontemps CC BY-NC-SA 3.0