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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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