Zipcar (now owned by Avis) initiated the business of renting cars by the hour and is still

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Zipcar (now owned by Avis) initiated the business of renting cars by the hour and is still the industry leader. However, car2go (owned by Daimler), Enterprise Car Share, and Hertz 24/7 have more recently entered the market. As of 2015, the four companies control about 95% of the U.S. car sharing market. Zipcar’s large network of members and cars may allow it to be a Stackelberg leader. Use graphs to show how the entry of rivals affects Zipcar. Discuss the difference between a market with a Stackelberg leader and one follower versus a market with three followers.

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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