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Which statement is correct regarding the sequential Hotelling model? The leader makes a higher profit than the follower. The leader makes a lower profit than

Which statement is correct regarding the sequential Hotelling model?

  • The leader makes a higher profit than the follower.
  • The leader makes a lower profit than the follower.
  • It is better for leader to wait and hide his price. That is, the leader is better off in the setting that both firms post prices simultaneously.
  • Both leader and follower makes the same profits.

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