Which of the duopoly models to the parties not choose simultaneously?
A)Cournot
B)Nash
C)Bertrand
D)Stackleberg

Question

Quizplus · Accepted Answer

In Stackelberg model, one firm acts as the leader and the other firm acts as a follower. The leader firm takes the first action by setting its output or price, and the follower firm observes the leader’s action and chooses its output or price accordingly. This model assumes that the leader firm has some advantage over the follower firm, such as better technology or market information. Therefore, in a duopoly situation where one firm has a competitive advantage over the other, the Stackelberg model is the appropriate choice. However, if both firms are assumed to be equal in terms of their cost structure and market power, the other three models - Cournot, Nash, and Bertrand - can be chosen.

Which of the Duopoly Models to the Parties Not Choose