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In the ________, one firm sets its output first, and then a second firm, after observing the first firm's output, makes its output decision.
A) Cournot model
B) model of monopolistic competition
C) Bertrand model
D) kinked-demand model
E) none of the above
Stackelberg
A model of a market in which one leader firm sets its output first, and then other firms follow, adjusting their outputs accordingly, in strategic game theory.
Cournot Model
A model in oligopoly theory where firms compete on the quantity of output they decide independently and simultaneously.
Monopolistic Competition
A market structure characterized by many firms selling products that are similar but not identical, allowing for competition on factors other than just price, such as quality and marketing.
- Attain an understanding of various oligopoly models and their predictions on pricing and quantity determinations.
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Learning Objectives
- Attain an understanding of various oligopoly models and their predictions on pricing and quantity determinations.
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