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A NOTE ON THE LEAPFROGGING ISSUE IN A QUALITY CHOICE GAME
Author(s) -
LU YUANZHU
Publication year - 2011
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.2011.00407.x
Subject(s) - leapfrogging , quality (philosophy) , economics , microeconomics , game theory , computer science , economic growth , philosophy , epistemology
This note discusses the leapfrogging issue in a quality choice game, namely a game in which two firms choose qualities sequentially and then compete in prices simultaneously. It first shows that ignoring the issue will lead to wrong results and then presents how to get correct results.