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Inves Airbus Invest Dont 1700 Boeing 0,180 Dont Invest Airbus Dont 0 0 The numbers between parentheses denote payoffs for Boeing and Airbus Question

Inves Airbus Invest Dont (170,0) Boeing (0,180) Dont Invest Airbus Dont (0,0) The numbers between parentheses denote payoffs for Boeing and Airbus Question 8 to Question 10: please refer to Diagram 3 Question 8 What does Boeing do if Boeing gets a subsidy of 10 to invest Airbus gets a subsidy of 10 to invest 4 Points Don’t Invest Invest only if Airbus also Invests Not enough information Question 9 What is Boeing’s payoff in the equilibrium of the game* if Boeing gets a subsidy of 10 to invest Airbus gets a subsidy of 20 to invest *Note: the payoff in the equilibrium of the game is the payoff that the players get when we solve the game 4 Points -15 -5 0 180 Question 10 What is Airbus’s payoff in the equilibrium of the game* if Boeing gets a subsidy of 0 to invest Airbus gets a subsidy of 10 to invest *Note: the payoff in the equilibrium of the game is the payoff that the players get when we solve the game 4 Points -15 -5 0 190

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