How supposed win from moving first turn out to be a big loss

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Reference no: EM133614228

Problem: Assuming this is a sequential game with no collusion, what is the outcome if Firm A moves first to build a new type of commercial aircraft? Explain why first-mover strategies in the real-world are only as good as the profit projections on which they are based. How could a supposed "win" from moving first turn out to be a big loss, while the "loss" of being preempted turns out to be a blessing in disguise?

Reference no: EM133614228

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