Stackelberg Independence

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

L'erreur dans la théorie des formes de marché sans équilibre. Une contribution au problème de la subjectivité de la science

von Stackelberg Heinrich. L'erreur dans la théorie des formes de marché sans équilibre. Une contribution au problème de la subjectivité de la science . In: Cahiers d'économie politique, n°37, 2000. Qu'a-t-on appris sur la concurrence imparfaite depuis Cournot? pp. 331-344