Reference no: EM1320565

Q. Assume 2 competitors, Airbus also Boeing, each face an important strategic decision concerning whether or not they should boost research also development (R&D) spending on new aircraft designs. Airbus can select either row in the payoff matrix defined below, whereas Boeing can select either column. For Airbus, the choice is either "boost R&D" or "hold R&D constant;" for Boeing the choices are the same. Notice that neither industry can unilaterally select a given cell in the profit payoff matrix. The ultimate result of this one-shot, simultaneous-move game depends upon the choices made by both competitors. In this payoff matrix, the 1st number in each cell is the profit payoff to Airbus (in billions); the second number is the profit payoff to Boeing (in billions).