This note studies a version of the Stackelberg model in which the Leader has more information about demand than the Follower. We show that there exists a unique D1 equilibrium and that this equilibrium is perfectly revealing. We also give a full characterization of the equilibrium in terms of the posterior beliefs of the Follower and show under which condition there is first mover disadvantage.
|Place of Publication||Tilburg|
|Number of pages||9|
|Publication status||Published - 1997|
|Name||CentER Discussion Paper|
- Separating equilibria
- signalling games
- Stackelberg competition