Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 31

Refer to the payoff matrix below.
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, whereas the "loss" of being preempted turn out to be a blessing in disguise