Question 2: (Matrix representation of Boeing-Airbus game) (In this question, you are supposed to set up the payoff matrix by yourself using the information given below. You can check the Prisoner's Dilemma example and its information on the slides of Ch.17 and follow that same pattern to learn how you can set up a payoff matrix using the given information on the possible actions/strategies and their related payoffs.) Boeing and Airbus have to decide whether to invest in the development of a Super Jumbo for long distance travel. If they both develop successfully the new plane, their profits will drop by 50 million dollars a year each. If only one develop the Super Jumbo, it will make 80 million dollars a year in additional profits, whereas the profits of the other firm will drop by 30 million dollars a year. If no firm develops the plane, nothing changes.

Airbus Boeing