Explain the benefit of being the incumbent
Assignment Task: Compare the Cournot and Stackleberg games and explain the benefit of being the incumbent. Explain why such a benefit would not exist in a Bertrand game with a first mover.
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(a) Show this game in extensive form. (b) Find a sub game-perfect equilibrium. (c) Show this game in normal form.
Compare the Cournot and Stackleberg games and explain the benefit of being the incumbent.
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