Scenario 13.14
Consider the game below:
-The game in Scenario 13.14
A) is Stackelberg if both players move at the same time; Cournot if one player moves first.
B) is Cournot if both players move at the same time; Stackelberg if one player moves first.
C) Stackelberg no matter what the timing of moves.
D) Cournot no matter what the timing of moves.
E) is neither Stackelberg nor Cournot.

Question

Scenario 13.14
Consider the game below: 
-The game in Scenario 13.14
A) is Stackelberg if both players move at the same time; Cournot if one player moves first. 
B) is Cournot if both players move at the same time; Stackelberg if one player moves first. 
C) Stackelberg no matter what the timing of moves. 
D) Cournot no matter what the timing of moves. 
E) is neither Stackelberg nor Cournot.

Quizplus · Accepted Answer

The game is Cournot if both players move at the same time, as they both have a choice of quantity to produce. However, if one player moves first, then the other player can observe their quantity choice before making their own choice, making it a Stackelberg game. Therefore, the game is Cournot if both players move simultaneously, but Stackelberg if one player moves first.

Scenario 13.14 Consider the Game Below