In a Stackelberg model the leader has the choice of the quality and imitation is costly. Paying a sunk cost is possible to have process or product innovation with some probability. An equilibrium is that the follwer invests and the leader does not.
|Dept. of Economics- Queen Mary college, university of London
|Numero di pagine
|Stato di pubblicazione
|Pubblicato - 1995
- product differentiation