This brings up the second major objection against the Brander-Spencer argument, which
is the practical difficulty of obtaining reliable information. In deciding whether or not it is
worthwhile to subsidize a domestic firm, it is critical for the government to have near-perfect
information about the cost functions, expected payoffs, and strategic behavior of the domestic
firm as well as the foreign rival. Lacking this information, it is possible for a government to
invest in a potentially disastrous and costly program of subsidies. An early example of the
possible pitfalls of strategic trade policy arising from the lack of precise information is the
subsidization of the Airbus A300 versus the Boeing 767.