Competition, Innovation, and Antitrust: A Theory of Market Leaders and Its Policy Implications

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a—rm acting as a leader with a first mover advantage in the choice of its production level over another—rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Sta...