Stackelberg's First-Mover Advantage | Microeconomics by Game Theory 101

[@iHazardGaming007]

Will the leader always produce greater quantity then the follower? Even if the follower has a lower MC than the leader?

[@Gametheory101]

If you pause at 2:35 and start plugging in values (make c_1 very high), you will see that the answer is no.

[@iHazardGaming007]

William Spaniel this might be a stupid question but what is a supposed to denote?

[@amaliarios78]

@@iHazardGaming007 I believe "a" represents the upper bound on price on the market; as quantity "q" increases, a - q decreases. Hope this helps

[@PunmasterSTP]

Another incredible lecture and demonstration; thanks for sharing! If I had to mention one thing, it would be that reminding us what the variables stand for in this video might be helpful. But overall I think it was still great.

[@revimfadli4666]

Interesting how opening information to your opponent gives an advantage

[@YellowCard1194]

hi, how do you simplify (a+c2)/2-c1 to (a-c)/2

[@Gametheory101]

Imagine that the players have the same marginal costs so that c_1 = c_2 = c, and then simpify.