This function numerically finds the equilibrium in a Stackelberg duopoly model with linear functions. For guaranteed existence of equilibrium, cost parameters should be non-negative. The general functional form for a function of argument x is \(f(x) = p_0 + p_1 x\). Parameters p refer to the inverse demand function. The firm indexed by "l" is the leader, and the one indexed by "f" is the follower.
stackelberg_solver(cl_0 = 0, cl_1 = 1, cf_0 = 0, cf_1 = 1,
p0 = 0, p1 = -1, l0 = 0, f0 = 0)intercept of leader's cost function
linear term's parameter of leader's cost function
intercept of follower's cost function
linear term's parameter of follower's cost function
intercept of inverse demand function. Defaults to 0.
linear term's parameter of inverse demand function. Defaults to -1. Note that it is important to specify it as a negative number, or the demand curve will be upward sloping.
Initial guess for leader's output. Defaults to 0. Strongly advised not to set this parameter unless you are very aware of what you're doing.
Initial guess for follower's output. Defaults to 0. Strongly advised not to set this parameter unless you are very aware of what you're doing.
A list with market price, firm output, profits and market share
# NOT RUN {
stackelberg_solver(p0 = 30)
# }
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