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Super Jumbos: Airbus vs. Boeing

[Photo: Kiefer]

Benjamin Esty and Pankaj Ghemawat from Harvard Business School drafted a working paper in August 2001 that explores why it was Airbus and not Boeing that made the commitment to launch a new Very Large Aircraft (VLA).

According to Esty and Ghemawat, game theory suggested that Boeing, as the incumbent, held all the advantages and that the barriers to entry were high for Airbus. So why did Boeing let Airbus take the initiative?

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