The advantage the leader has in the Stackelberg model, which allows the leader to produce a higher level of output than in the Cournot equilibrium, thus receiving greater profits, is known as the

Question

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The advantage described in the question is commonly referred to as the first-mover advantage, which is the benefit that a firm gains by being the first to enter a market or take a specific strategic action. In the Stackelberg model, the leader has the advantage of being able to set the quantity first and the follower has to adjust accordingly. As a result, the leader can effectively set the market price and production levels, achieving greater profits. Therefore, the correct answer is A - first-mover advantage.

The Advantage the Leader Has in the Stackelberg Model, Which