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Stackelberg Model numerical with solution

Stackleberg model was developed by Heinrich Stackleberg in 1934 the model is based on non cooperative game. It a is model of imperfect completion , It is same as Cournot model but firms don't make decisions simultaneously (here one firm move first then other move ) 
Assumptions :
 1) Homogeneous product.
 2) Limited number of firms. 
 3) Firms do not collude. 

                                         Theory : 
When first firm moves first it gives first firm advantage because now if second firm is going to respond by choosing the appropriate point on its best response curve, it has no choice but to choose the output that corresponds to the output chosen by the first firm. This form of competition is called Stackleberg completion and the firm moving first is called the stackleberg leader

To calculate Mathematical problem of Stackelberg Model

solution of equilibrium quantity and price of stackelber model

output and price in stackelberg model
Add caption

profit of both firms under equilibrium


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