Assume two airlines serve many of the same routes. Travelers notice there is rarely any significant difference in fares. Could this behavior be an example of the kinked demand curve theory of oligopoly in practice? Explain why the two airlines might be reluctant to raise or lower prices. Would anything change their reluctance?
If the two are generally not competing on price, are there any forms of non-price competition that might emerge? If so, describe them. Or would such other forms of competition also exhibit "kinked type behavior"?