This paper develops simple algebraic model which provides a new perspective on (1) how we teach the interaction between firms in a Stackelberg model; and (2) how the same framework can be extended to a discussion on entry into an industry. Besides providing a different approach to teaching the Stackelberg model, my framework has the additional advantage that it is intuitive, technically simple and thus readily accessible to students who may not have a background in calculus.
Get full access to this article
View all access options for this article.
References
1.
AokiRPrusaT. (1996), “Product Development and the Timing of Information Disclosure under U.S. and Japanese Patent Systems,”Journal of the Japanese and International Economies, v 10, pp. 233–49.
2.
AokiRPrusaT. (1997), “Sequential versus Simultaneous Choice with Endogenous Quality,”International Journal of Industrial Organization, v 15, pp. 103–121.
3.
BrowningEdgarZupanMark (1999), Microeconomic Theory and Application, 6th Edition, Addison Wesley. Reading, Mass.
4.
CarltonD. W.PerloffJ. M. (1994), Modern Industrial Organization, 2nd edition, Harper Collins College Publishers, New York.
5.
ChaudhuriA. (2000) “Endogenous Quality Choice and the Impact of Quantitative Restrictions,”The International Trade Journal, Volume XIV, No. 4, Winter 2000, pp. 377–397.
6.
EatonB. C.EatonD. F. (1995), Microeconomics, 3rd edition, Prentice-Hall, Englewood Cliffs, New Jersey.
7.
MansfieldE. (1997), Microeconomics, 9th edition, W.W. Norton, New York.
8.
PepallLynneRichardsDanielNormanGeorge (1999), Industrial Organization: Contemporary Theory and Practice, 2nd Edition, Southwestern College Publishers, Cincinnati, Ohio.
