(1) As Boeing moves to select a new passive restraint safety system for its airplanes, it finds that its competitor, Airbus, opposes the move with an alternative technology. Boeing must now evaluate its strategy and determine whether

Multiple Choice

• the secure strategy is the best alternative.
• Boeing used the circle technique to arrive at its decision.
• Airbus's alternative is credible.
• Airbus should really be the first mover.

(2). As Boeing and Airbus compete, Boeing selects a new and superior brake technology. Airbus prefers a different brake technology, but feels trapped into selecting the same one used by Boeing. This is due to

Multiple Choice

• first-mover advantage.
• adverse selection.
• extension form.
• secure strategy.