In the Stackelberg Model, There Is an Advantage

question 45

Multiple Choice

In the Stackelberg model, there is an advantage:

• A) to waiting until your competitor has committed herself to a particular output level before deciding on your output level.
• B) to being the first competitor to commit to an output level.
• C) to the firm with a dominant strategy.
• D) to producing an output level which is identical to a monopolist's output level.

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Definitions:

Apparent Authority

An accountability doctrine whereby a principal, by virtue of words or actions, leads a third party to believe that an agent has authority but no such authority was intended. Also called ostensible authority and agency by estoppel.

Agency by Estoppel

A situation where a person is prevented by their own actions from denying or negating the existence of an agency relationship.

Cocktail Party

A social gathering where guests enjoy alcoholic beverages and light refreshments, typically standing and mingling.

Duty

An obligation placed on individuals because of the law.