Game Theory: The Developer's Dilemma, Boeing Vs. Airbus
Committing large chunks of a company's resources to a single investment project is always a risky undertaking. It becomes even riskier when a competitor is set to do the same thing and the market is unlikely to sustain two rival products .
This may appear to be the ration-ale behind the Boeing Company's much-publicized cancellation of the development of its "superjumbo," a whole new class of aircraft with room for 500 to 1,000 passengers.
"The market isn't ready yet," announced John Hayhurst, general manager of Boeing's "superjumbo" project, early last year. According to a new Boeing study, customers choosing direct flights in smaller jets, avoiding the hubs of Singapore, London's Heathrow and New York's Kennedy International, were undermining the commercial viability of investments in super-large airliners -- investments that might well exceed $10 billion. Mr. Hayhurst estimated demand between 1997 and 2014 at below 500 craft, while Europe's Airbus Industry, Boeing's only......
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Approximate Word Count: 1232
Approximate Pages: 5 (250 words per double-spaced page)
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Game Theory: The Developer'S Dilemma, Boeing Vs. Airbus
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