How does moving first reduce the revenue destruction effect
Question # 00767792
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Updated on: 06/26/2020 06:03 AM Due on: 07/09/2020
In the Cournot model (see Chapter 5), the revenue destruction effect limits the willingness of firms to expand output. In the Stackelberg model, the firm that moves first produces more than it does in Cournot's model. How does moving first reduce the revenue destruction effect?
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