ECON 306 Lecture Notes - Lecture 1: Non-Cooperative Game Theory, Imperfect Competition, Nash Equilibrium
Document Summary
Econ 306 stackelberg competition: the stackelberg duopoly model of duopolies is very similar to the cournot model, like the cournot model, the firms choose the quantities they produce. In the stackelberg model, however, the firms do not move simultaneously. One firm holds the privilege to choose production quantities before the other. The assumptions underlying the stackelberg model are as follows: A firm chooses before the other in an observable manner. The model is restricted to a one-stage game. Stackelberg duopoly, also called stackelberg competition, is a model of imperfect competition based on a non-cooperative game: developed in 1934 by heinrich stackelbelrg in his market structure and. Equilibrium and represented a breaking point in the study of market structure, particularly the analysis of duopolies: model based on different starting assumptions and gave different conclusions to those of the cournot"s and bertrand"s duopoly models. In game theory, a stackelberg duopoly is a sequential game (not simultaneous as in.
