this example, Boeing has a first-mover advantage: By moving first, Boeing makes higher profits than Airbus, who moves second. If Airbus moves first, the ad- vantage is reversed. Knowing Boeing’s incentive to match the technology in the second stage, Airbus would choose Beta in the first round and receive higher prof- its. This example illustrates that managers must consider carefully the order of moves in strategic situations. When Boeing and Airbus make simultaneous choices, there are two potential equilibria. In the sequential game there is only one. The outcome, however, depends on who moves first.
The first mover does not always have a strategic advantage. In some situations, the follower has the advantage. Consider a firm that cuts its development costs by copying product innovations by pioneering firms—after all, the second mouse gets the cheese.