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Deterred entry firm 2 - PowerPoint PPT Presentation

Cournot versus Stackelberg

x 1 x 2. Cournot versus Stackelberg. Cournot duopoly (simultaneous quantity competition) Stackelberg duopoly (sequential quantity competition). x 1. x 2. Homogeneous duopoly (linear case). Two firms (i=1,2) produce a homogenous goods. Outputs: x 1 and x 2 , X= x 1 +x 2

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Deterred entry firm 2 - PowerPoint PPT Presentation

Cournot versus Stackelberg