The holiday season (the month between Thanksgiving and Christmas) is the most important time of the year for logistics.companies like UPS and FedEx. During this period, they need to cope with high volumes. Both UPS and FedEx struggle todeliver the surge of packages they receive. Every year, UPS and FedEx are thinking about whether they should add additionalsurcharges during this pcak period. Such higher rates could increase the profits of both firms. However, the profits also dependon the competitor's decisions. Suppose UPS and FedEx make their pricing decisions simultaneously, without anycommunication. The payoff matrix during the holiday season of UPS and FedEx is as follows:
