Question
Why is there generally a first-mover advantage under sequential quantity competition (with one leader and one follower) and a secondmover advantage under sequential price competition?
Why is there generally a first-mover advantage under sequential quantity competition (with one leader and one follower) and a secondmover advantage under sequential price competition? Explain by referring to the concepts of strategic complements and strategic substitutes.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
