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Essay

Airbus

Essay specific features

 

Issue:

Technology

 

Written by:

Barbara G

 

Date added:

September 18, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 659

 

Was viewed:

3925 times

 

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Essay content:

Airbus will always choose to launch, given anything that Boeing does. On the other end of the spectrum, if Airbus chooses NOT to launch, Boeing would also choose to launch to take advantage of the market share. Likewise, if Airbus chooses to launch, Boeing would still choose to launch, given that they would receive a larger payoff...
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It is evident that Boeing also has a dominant strategy to launch, given anything that Airbus does. Based on this analysis, it is clear that both Airbus and Boeing possess respective dominant strategies: they will both choose to launch, no matter what, thus creating a Nash Equilibrium (NE). Both companies will prosper more from launching, thus there will not be any incentive, for either company, to change their strategy once equilibrium is established...
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