A model in which one firm chooses its quantity first, and then the other firm, knowing what firm 1 has done, makes its choice is called the

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The Stackelberg model is a sequential game in which one firm (the leader) selects its quantity first, and the other firm (the follower) chooses its quantity strategically based on the leader's choice. In this model, the leader has a first-mover advantage as it can set its output level to deter the follower from entering the market or undercutting its price. Hence, the leader has higher profits than the follower in the Stackelberg model. Therefore, this model is the best choice for firms that are looking to strategically compete by setting quantities.

A Model in Which One Firm Chooses Its Quantity First