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Between 1995 and 1997, American Airlines competed in the Dallas/Fort Worth Airport against several other low-cost carriers. In response to these low-cost carriers, American Airlines reduced its price and increased service on selected routes. As a result, one of the low-cost carriers stopped service, which led American Airlines to increase its price. Why do you think a lawsuit was filed against American Airlines? Why do you think American Airlines prevailed at trial?

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The lawsuit was probably filed because the low-cost carrier accused American Airlines of Predatory pricing. Pricing your products or service below ...

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