In the Stackelberg Model of oligopoly, the first mover advantage is

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    due to Firm 1 being able to sell output sooner and at higher prices than the reacting firm.
     the result of Firm 1 removing uncertainty from the market by announcing its strategy to its competing firms.
     due to Firm 1 being able to observe and adjust strategy to maximize profits once more information on its rivals reactions in the market have been observed..
     the result of the higher profits Firm 1 earns as a result of its rival firms being forced to limit output and take Firm 1s large output as given..
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the result of the higher profits Firm 1 earns as a result of its rival firms being forced to limit output and take Firm 1s large output as given..
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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