1.
Hinnosaar, T. (2021).
Stackelberg Independence
.
Journal of Industrial Economics
, 69(1), 214-238. https://doi.org/10.1111/joie.12244
The standard model of sequential capacity choices is the Stackelberg quantity leadership model with linear demand. I show that under the standard assumptions, leaders' actions are informative about market conditions and independent of lead-ers' beliefs about the arrivals of followers. However, this Stackelberg independence property relies on all standard assumptions being satisfied. It fails to hold whenever the demand function is non-linear, marginal cost is not constant, goods are differentiated, firms are non-identical, or there are any externalities. I show that small deviations from the linear demand assumption may make the leaders' choices completely uninformative.


Filter results by:

Journal: American Economic Review (2), Review of Economic Studies (3), Review of Economics and Statistics, Management Science, Journal of Political Economy, Journal of Public Economics, Journal of Economic Literature, Journal of the European Economic Association (4), Economic Journal (2), Journal of Economic Theory (5), Journal of International Economics (2), Economics Letters (2), Journal of Economic Behavior and Organization (3), Games and Economic Behavior (5), Journal of Banking and Finance, European Economic Review (2), Annals of Operations Research (2), American Economic Journal: Microeconomics (2), Economic Theory (2), Economics of Education Review, International Economic Review, RAND Journal of Economics (2), Environmental and Resource Economics, International Journal of Industrial Organization, Journal of Economic Psychology, Theoretical Economics, Journal of Corporate Finance, Journal of Industrial Economics, Scandinavian Journal of Economics, Theory and Decision (2), Journal of Comparative Economics, Resource and Energy Economics (2), International Journal of Game Theory, Oxford Economic Papers, Quarterly Journal of Political Science, Journal of Public Economic Theory, Mathematical Social Sciences (2), International Journal of Finance and Economics, Environmental Economics and Policy Studies (2), Brain Communications, Dynamic Games and Applications, Games (2),

Year: 2024 (2), 2023 (12), 2022 (5), 2021 (7), 2020 (6), 2019 (5), 2018 (13), 2017 (11), 2016 (9), 2015 (11)