In a Stackelberg Duopoly

question 126

Multiple Choice

In a Stackelberg duopoly,

• A) leader firms are always dominant.
• B) no Nash equilibrium is possible.
• C) the two firms move simultaneously.
• D) one firm is the leader; the other is the follower.

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Definitions:

Degrees of Freedom

The number of independent pieces of information upon which a statistical estimate is based minus the number of parameters being estimated.

Two-way ANOVA

A statistical method used to examine the effects of two different independent variables on one dependent variable.

Two-way Factor ANOVA

A statistical test used to determine the effect of two nominative variables on a continuous outcome.

Total Sum of Squares

A statistical measure that quantifies the total variance in the observed data points from the mean of the data.