Do Followers Really Matter in Stackelberg Competition?

Ludovic Julien (), Olivier Musy and Aurélien Saidi ()

Revista Lecturas de Economía, 2011

Abstract: Resumen: En este artículo se considera un modelo de oligopolio de Stackelberg lineal en T etapas. En primer lugar, se muestra geométrica y analíticamente que bajo las condiciones de demanda de mercado lineal y costos marginales constantes e idénticos el modelo de Stackelberg en T etapas se reduce a un modelo en el que T firmas explotan la demanda residual secuencialmente. En cualquier etapa, los líderes se comportan como si los seguidores no importaran. En segundo lugar, se estudia el bienestar social y la convergencia hacia el equilibrio competitivo. En particular, se considera la velocidad de convergencia a medida que el número de firmas incrementa. La convergencia es más rápida cuando las firmas se relocalizan desde la cohorte más poblada a la menos poblada hasta que el tamano de las cohortes se iguala.Abstract: In this paper, we consider a T-stage linear model of Stackelberg oligopoly. First, we show geometrically and analytically that under the two conditions of linear market demand and identical constant marginal costs, the T-stage Stackelberg model reduces to a model where T oligopolies exploit residual demand sequentially. At any stage, leaders behave as if followers did not matter. Second, we study social welfare and convergence toward competitive equilibrium. Especially, we consider the velocity of convergence as the number of firms increases. The convergence is faster when reallocating firms from the most to the less populated cohort until equalizing the size of all cohorts.

Keywords: razón de descuento del markup del líder; economía lineal; índice de producto del seguidor; competencia de Stackelberg generalizada (search for similar items in EconPapers)
JEL-codes: L13 L20 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Do Followers Really Matter in Stackelberg Competition? (2011)
Working Paper: Do followers really matter in Stackelberg competition? (2011)
Working Paper: Do followers really matter in Stackelberg competition? (2011)
Working Paper: Do followers really matter in Stackelberg competition? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000174:010139

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