Question: irbus and Boeing have two possible actions each: keep producing the current (Old) aircraft models or introduce the new (New) ones. The old models are
irbus and Boeing have two possible actions each: keep producing the current ("Old") aircraft models or introduce the new ("New") ones. The old models are well-tested, and known to be safe. The new models can either be good (safe) or bad (prone to air crashes). The qualities of Airbus and Boeing new models are independent of each other. If both players keep producing old models, each of them gets the payoff of 3. If both switch to production of the new models, each of them gets the payoff of 1 if both models are good and -1 if both models are bad. If the new models are of different qualities, then the company that produces a good new model gets payoff 5, and the other company gets payoff -2. If only one company switches to producing the new model, and the other company keeps producing the old model, then the former gets the payoff of 4 if the new model is good and -1 if the new model is bad. The other company gets the payoff of 2 if the competitor's new model is good and 4 if the new model is bad
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