Citation
Boeing versus Airbus: The Inside Story of the Greatest International Competition in Business
TL;DR
Duopoly market shares stabilize around 50/50
Newhouse's account of the Boeing-Airbus duopoly shows how competitive equilibrium stabilizes in concentrated industries. The book documents how production capacity limits, certification throughput, and customer switching costs create stable market shares.
This provides the case study for understanding competitive walls - when market structure prevents either competitor from breaking equilibrium without radical innovation or external disruption.
Key Findings from Newhouse (2007)
- Duopoly market shares stabilize around 50/50
- High customer switching costs lock in market structure
- Production capacity and certification create natural limits