Duopoly Market Structure: A duopoly, with only two competitors in the market, is the extreme basic form of an oligopoly, with few competitors in the market. Duopolists engage in a non-cooperative game because many states do not legally allow businesses to come together and form a cartel where they can agree on certain prices, quantities, strategies, etc. Non-cooperative games can take the form of Cournot, either the firms move together and choose their quantities simultaneously, or Stackelberg, the leader firm moves first and sets the quantity of output, then the follower firm moves to second based on the move of the first company. Assuming that each firm is able to have complete information about the other, both realize the market power of each respective firm. Deviating from the plan/quantity will lead both companies to cheat and thus the race to the bottom will begin. This can be illustrated by showing the profit function of both firms using the Dixit (1979) equation: Πi(x1,x2) = xi U(x1,x2) – Ci(xi), i= 1,2Where x is the quantity/production, Ci is the total cost and U is the utility. The action of one company can have a substantial effect on the other. Civil aviation industry: The acquisition of substantial market power in the commercial aviation sector allows for a significant impact on technological development, economic growth, employment, and national prestige (Carbaugh & Olienyk 2004). In 2010, more than any other manufacturing sector, the value of aerospace industry shipments in the United States accounted for more than $171 billion worth of civil aircraft and a trade surplus of more than $43 billion (Harrison 2011). Like any other sector, the large commercial aircraft sector is influenced by macro, endogenous and exogenous factors. Several factors can influence the industry, i.e. the competitiveness of the industry as more and more companies enter the market. Recently, Embraer and Bombarfier are the dominant regional jet manufacturers,