Boeing plays tough

This article from Reuters is an account of Boeing's reaction when union leaders reject Boeing's offer of a contract that would have eliminated pensions; Boeing announced that it is drawing up a short list of possible locations in which to build the 777x. The article illustrates bargaining and game theory. The short list raises the disagreement outcome for Boeing and reduces the disagreement outcome for the union. The short list also could be viewed as a threat or signal in sequential game.