Analysis and Discussion of Stackelberg Competition

Abstract

As a matter of fact, the Stackelberg competition is the hardest and most common model in Microeconomics. In reality, it still appears anywhere even in recent years, which has been widely implemented in various fields including economic, business, medical industry and so on. For corporations or individual businessman, one has to have some mind about Stackelberg competition in order to have a higher reward in the business area based on game theory. With this in mind, in this article, it mainly describes from a businessman’s perspective in order to make it easier to understand. To be specific, the mathematical descriptions for Stackelberg competition are described and the different situations are compared and analyzed. According to the evaluations, the performances are clear for different conditions. At the same time, the limitations of the model as well as further development are also estimated and discussed. Overall, these results shed light on guiding further exploration of Stackelberg competition analysist.