Although much of the logic behind the Stackelberg model is used in the Cournot model

Although much of the logic behind the Stackelberg model is used in the Cournot model

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Although much of the logic behind the Stackelberg model is used in the Cournot model,  the two outcomes are radically different: being the first to announce creates a credible  threat. In the Cournot model, both firms make their choices simultaneously and have no  communication beforehand. In the Stackelberg model, Firm 1 not only announces first,  but Firm 2 knows that when Firm 1 announces, Firm 1's actions are credible and fixed.  This demonstrates how a slight change in the flow of information can drastically impact  the outcome of a market.  Bertrand Duopoly  The Bertrand duopoly Model, developed in the late nineteenth century by French  economist Joseph Bertrand, changes the choice of strategic variables. In the Bertrand  model, rather than choosing how much to produce, each firm chooses the price at which  to sell its goods.  1. Rather than choosing quantities, the firms choose the price at which they 
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Although much of the logic behind the Stackelberg model is used in the Cournot model

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