In a Stackelberg duopoly,

Name: In a Stackelberg duopoly,
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

In a Stackelberg duopoly, one firm is the leader and the other is the follower. The leader moves first and chooses its output level, which the follower observes before choosing its own output level. This sequential game structure gives the leader an advantage, as it can take into account the follower's response when making its decision. Therefore, the correct choice is D, which states that one firm is the leader, and the other is the follower.

In a Stackelberg Duopoly