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One-leader and multiple-follower Stackelberg games with private information

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  • Nakamura, Tomoya

Abstract

This study analyzes one-leader and multiple-follower Stackelberg games with demand uncertainty. We demonstrate that the weight on public information regarding a follower’s estimation of demand uncertainty determines the strategic relationship between the leader and each follower. When the relationship is strategic complement, the leader can exit from a market. The threshold is determined by the intensity of Cournot competition among the followers.

Suggested Citation

  • Nakamura, Tomoya, 2015. "One-leader and multiple-follower Stackelberg games with private information," Economics Letters, Elsevier, vol. 127(C), pages 27-30.
    • Handle: RePEc:eee:ecolet:v:127:y:2015:i:c:p:27-30
    DOI: 10.1016/j.econlet.2014.12.010
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    References listed on IDEAS

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    1. George-Marios Angeletos & Alessandro Pavan, 2007. "Efficient Use of Information and Social Value of Information," Econometrica, Econometric Society, vol. 75(4), pages 1103-1142, July.
    2. Ui, Takashi & 宇井, 貴志 & Yoshizawa, Yasunori & 吉沢, 裕典, 2013. "Characterizing Social Value of Information," Discussion Papers 2013-01, Graduate School of Economics, Hitotsubashi University.
    3. Stephen Morris & Hyun Song Shin, 2002. "Social Value of Public Information," American Economic Review, American Economic Association, vol. 92(5), pages 1521-1534, December.
    4. Shinkai, Tetsuya, 2000. "Second Mover Disadvantages in a Three-Player Stackelberg Game with Private Information," Journal of Economic Theory, Elsevier, vol. 90(2), pages 293-304, February.
    5. Esther Gal-Or, 1987. "First Mover Disadvantages with Private Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(2), pages 279-292.
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    Citations

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    Cited by:

    1. Daher, Wassim & Karam, Fida & Ahmed, Naveed, 2023. "Insider Trading with Semi-Informed Traders and Information Sharing: The Stackelberg Game," MPRA Paper 118138, University Library of Munich, Germany.
    2. Lina Mallozzi & Roberta Messalli, 2017. "Multi-Leader Multi-Follower Model with Aggregative Uncertainty," Games, MDPI, vol. 8(3), pages 1-14, June.
    3. Cumbul, Eray, 2021. "Stackelberg versus Cournot oligopoly with private information," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    4. Wassim Daher & Fida Karam & Naveed Ahmed, 2023. "Insider Trading with Semi-Informed Traders and Information Sharing: The Stackelberg Game," Mathematics, MDPI, vol. 11(22), pages 1-16, November.
    5. Yuki Amemiya & Akifumi Ishihara & Tomoya Nakamura, 2021. "Pre‐emptive production and market competitiveness in oligopoly with private information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(2), pages 449-455, May.
    6. Eray Cumbul, 2022. "Acquisition, Aggregation, and Sharing of Information in Sequential-Move Aggregative Games," American Economic Journal: Microeconomics, American Economic Association, vol. 14(3), pages 441-479, August.

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    More about this item

    Keywords

    Stackelberg competition; Cournot competition; First and second mover advantages; Public and private information;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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