EIRP Proceedings, Vol 10 (2015)

Abstract

Oligopoly is a market situation where there are a small number of bidders (at least two) of a good non-substituent and a sufficient number of consumers. The paper analyses the Stackelberg model for a leader of production and many satellites. There are obtained the equilibrium productions, maximum profits and sales price where one of the company is the leader of quantity, and other satellites. There are also survey the situations where the firm based on its marginal cost of production can effectively take the lead of production.