One-Leader and Multiple-Follower Stackelberg Games with Private Information
13 Pages Posted: 16 Jul 2014 Last revised: 27 Sep 2016
Date Written: August 29, 2014
Abstract
This study analyzes one-leader and multiple-follower Stackelberg games with demand uncertainty. We demonstrate that the weight on public information regarding a follower's estimation of demand uncertainty determines the strategic relationship between the leader and each follower. When the relationship is strategic complement, the leader can exit from a market. The threshold is determined by the intensity of Cournot competition among the followers.
Keywords: Stackelberg games; Cournot games; First-mover and second-mover advantages; Public and private information
JEL Classification: C72, D82, L13
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