'Economics Essay\r'

'S out(a)hwest Airlines begins a â€Å" Bags fly front Free” campaign, charging no fees for a inaugural and second checked bag. Does this situation beat represent producer†producer contestation, consumer†consumer rivalry, or consumer†producer rivalry? Explain.\r\n southwestward Airlines â€Å"Bags cut down Free” vanquish represent producer-producer rivalry.\r\nConsumers withdraw so m all different choices of airlines they crowd out choose and generally most of us would like to aim the most out of our money on our flights. Producer much(prenominal) as southwesterly wants to win our melodic phrase by providing promotion such as â€Å"Bags Fly Free” to entice consumers non to worry about paying bag fees at the airport. Airlines are competing with each early(a) to win over a especial(a) amount of customers. We as consumers want the best price and benefits with the least amount of stress.\r\nThis cannot be consumer-consumer rivalry becau se thither are set of airlines available to the consumers. Consumers are not exceptional to only Southwest Airlines so there won’t be any competiveness among consumers to fight for a seat to get to their destination.\r\nThis is not consumer†producer rivalry because there is no debate in pricing. Southwest provides a price for their flight and we as the customer can either grease ones palms or not buy from Southwest. customer cannot bargain back and forth with Southwest for a seat to their destination.\r\nThis is definitely producer-producer rivalry in where Southwest believes their business teaching is not to charge bag fees volition be a competitive value over many other airlines who charges bags to fly.\r\n'