Asked by
Brooklyn Crummett
on Oct 25, 2024
Verified
Which is true of output-choice models of oligopoly behavior?
A) Both the Stackelberg and Cournot models can be constructed as sequential games.
B) The Stackelberg, but not the Cournot, model can be constructed as a sequential game.
C) The Cournot, but not the Stackelberg, model can be constructed as a sequential game.
D) Neither the Cournot nor the Stackelberg model can be constructed as a sequential game, but other output-choice models can be.
E) There is no relationship between any output-choice model and sequential games.
Stackelberg
An economic model of market structure in which one firm sets its output decision first, and other firms follow, establishing a leader-follower dynamic.
Cournot
Refers to an economic model of competition among firms, where each firm decides its production level assuming the other firms' levels are fixed, leading to a state of Cournot equilibrium.
Sequential Games
Games in which players make decisions one after another, with later players having knowledge of the previous actions taken by other players.
- Explore the ramifications of sequential-move and simultaneous-move games.
Verified Answer
DD
Learning Objectives
- Explore the ramifications of sequential-move and simultaneous-move games.