Price Stackelberg Game Model Under Capacity Constraints

摘要

In this paper we investigate a price Stackelberg game model in a homogeneous product market. Two identical firms, which are limited by capacity constraints, compete with price as their strategic variable, and an efficient rationing rule is adopted. There is a unique subgame perfect Nash equilibrium (SPNE) in which the two firms quote the same prices. In certain capacity range, there is a second mover advantage. In addition, we analyze an asymmetric case and find the second mover advantage still exists.