Froeb rule of "look ahead and reason back." Can, and how does, the entrant succeed? Is the incumbent ever in control of this game? You may wish to review the old game known as Duopoly, as well as Antoine-Augustin Cournot
We want to use the Froeb rule of "look ahead and reason back."
Can, and how does, the entrant succeed? Is the incumbent ever in control of this game?
You may wish to review the old game known as Duopoly, as well as Antoine-Augustin Cournot, to help inform your post.
In Managerial Economics, in light of the Cournot duopoly sequential game model or setting, the primary and main decisive component or determinant of the Nash equilibrium outcome in any duopolistic strategic sequential game setting is the quantity or the output competition between the two firms, specifically the new entrant firm and the existing incumbent firm in the market. In this context, based on the overall market demand for the concerned product or service in the duopoly market, the key for the new entrant firm in the market in this respect is the total quantity of output already produced by the incumbent firm in the market.
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