Airoeing Airlines Case Study

762 Words4 Pages
ISTANBUL AYDIN UNIVERSITY FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES INTERNATIONAL TRADE Analysis of Behavior of Airbus and Boeing Companies From the Game Theories Perspectives CANSU BETÜL KARALI B1306.060039 Analysis of Behavior of Airbus and Boeing Companies From the Game Theories Perspectives Summary In this study, the relation between game theory and strategic foreign trade models of two airline…show more content…
Pioneering work in this direction has shown that a firm can increase the competitiveness of its own companies against other companies, with export incentives or import restrictions which are being applied at an appropriate levelstage. The difficulties of modeling the oligopolistic market structure and the empirical measurement of the benefits and costs of applying these policies contain essential problems, as economists criticize the approach of strategic trade policy. At the same time, in contrast with their difficulties, in the limited number of studies conducted in this direction, the sectors in which strategic trade policies can be implemented were identified and the consequences of policy implementations in these sectors were evaluated using the calibration…show more content…
However, externalities are distortions that concern the internal economy and necessitate the usage of industry policies. If externalities arise from the export activity itself, but not from production, then there might be a matter for the usage of trade policies in this case (Alam, 1995). Although external economies are not a new thesis, this fact is not explicitly mentioned in traditional theories of international trade (Krugman, 1987), because the full competition hypothesis includes the freedom of access to the available information and excludes new information production and the difficulties of modeling positive externalities. In recent years, the importance of high-tech industries in international trade have increased and the re-evaluation of externalities have been taken to re-evaluate the production of new information, In other words, the intensity of R&D activities has increased (Krugman and Obstfeld,

    More about Airoeing Airlines Case Study

      Open Document