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23.1 Stackelberg Equilibrium eader 450 375 225 500 400 200 450 300 0 450 500 450 375 400 300 225 200 O (a) What is
23.1 Stackelberg Equilibrium eader 450 375 225 500 400 200 450 300 0 450 500 450 375 400 300 225 200 O (a) What is the Subgame Perfect Nash Equilibrium? (b) What if there was a cost to being in the leader position? Suppose that rm 1 can choose to either pay $100 and move before the other rm, or it can not pay the $100 and choose its quantities simultaneously with the other rm. Should rm 1 pay the $100 in order to gain the rst-mover advantage
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