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A Game Theoretical Interpretation of the Stackelberg Disequilibrium
| Content Provider | Semantic Scholar |
|---|---|
| Author | Ito, Yozo Kaneko, Mamoru |
| Copyright Year | 1980 |
| Abstract | In many imperfect competition theories, the Stackelberg disequilibrium plays an important role to show that an imperfect competition—even the simplest duopoly—is very complicated and subtle, and that we must treat it with the greatest care. The significance of the Stackelberg disequilibrium, however, has not been made fully clear until now. The Stackelberg disequilibrium is usually interpreted as providing a criticism against the assumption of each duopolist's behavior in Nash (Cournot) equilibrium in which each adjusts his strategy assuming that his rival sticks to a strategy. However it may be also possible to interpret it as a situation where a "leader" decides an output level before a "follower" does and then informs him of the decision and each duopolist can choose to behave as a leader or a follower. We make often this interpretation , which is, however, not discussed explicitly nor formally. So, we will seek to make this interpretation clear in this paper. In this paper, we employ the above interpretation of "leader" and "follower ." More precisely, we regard a "leader" in the Stackelberg disequilibrium as a duopolist who decides his output level before his rival's decision and then informs him of it, and regard a follower as one who waits to be informed of it and then decides his output level under the information . Then we formulate the full argument of the Stackelberg disequilibrium as a game in extensive form and apply Selten's [5, 6] subgame perfect equilibrium to this game . We obtain the result that in the equilibrium, a kind of prisoner's dilemma appears but not the Stackelberg disequilibrium. Further we discuss a variation of the game to clarify and specify our interpretation. |
| Starting Page | 29 |
| Ending Page | 40 |
| Page Count | 12 |
| File Format | PDF HTM / HTML |
| Volume Number | 17 |
| Alternate Webpage(s) | http://koara.lib.keio.ac.jp/xoonips/modules/xoonips/download.php/AA00260492-19800001-0029.pdf?file_id=29099 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
