Saved in:
Bibliographic Details
Main Authors: Badev, Anton, Pavlov, Martin, Zlatanov, Boyan
Format: Preprint
Published: 2026
Subjects:
Online Access:https://arxiv.org/abs/2604.26487
Tags: Add Tag
No Tags, Be the first to tag this record!
Table of Contents:
  • We analyze a canonical extension of the Stackelberg duopoly to a sequential framework, where each firm strategically anticipates the reactions of all subsequent players. In a triopoly (three-firm) settings, we obtain existence and uniqueness of market equilibrium via a reformulation of the equilibrium conditions that draws on coupled fixed-point theory. Even with linear demand, convergence of myopic best-response dynamics is not guaranteed. A recursive equilibrium formulation enables the analysis of the limiting case as the number of participants grow.