Stackelberg Competition
Definition
An oligopoly model where one firm chooses output first (the leader); others react. Leader earns more than in Cournot.
Example
An incumbent setting capacity to deter entry behaves Stackelberg-style.
An oligopoly model where one firm chooses output first (the leader); others react. Leader earns more than in Cournot.
An incumbent setting capacity to deter entry behaves Stackelberg-style.