Final answer:
The stackelberg outcome differs from the cournot equilibrium because the games involve different strategic variables, the first mover can commit to an output off its best-response function, and quantity supplied is not equal to quantity demanded at the prevailing price.
Step-by-step explanation:
The stackelberg outcome differs from the cournot equilibrium because:
- a. the games involve different strategic variables.
- b. the first mover can commit to an output off its best-response function.
- c. quantity supplied is not equal to quantity demanded at the prevailing price.
- d. it's not a perfectly competitive outcome.
In the stackelberg model, one firm acts as a leader and sets its quantity before the other firms make their decisions. This is different from the cournot equilibrium where all firms simultaneously decide their quantities. The stackelberg outcome allows the leader to commit to a quantity based on its best-response function, giving it an advantage over the other firms.