In economics duopoly is a market dominated by two firms large enough to
influence the market price. Stackelberg presented a dynamic form of duopoly
that is also called `leader-follower' model. We give a quantum perspective on
Stackelberg duopoly that gives a backwards-induction outcome same as the Nash
equilibrium in static form of duopoly also known as Cournot's duopoly. We find
two qubit quantum pure states required for this purpose.Comment: Revised in the light of referee's comments. Latex, 16 pages, 2
figures, To appear in Phy. Rev.
