Comparing Cournot and Stackelberg Duopoly

Equilibrium properties of Cournot and Stackelberg duopoly are compared with respect to outputs, profits, and welfare, the results of which depend on some conditions expressed in terms of the elasticities of the cost and demand functions. In particular, the case where the condition owing to Fisher (1961), Hahn (1962), and Okuguchi (1964, 1976, 1999) is not satisfied exactly corresponds to the case where the marginal revenue curve is steeper than the demand curve, the marginalcost curve is decreasing, and the demand curve is elastic to some extent, the case of which gives rise to different results from Okuguchi's (1999).