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First and second mover advantages and the degree of conflicting interests

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  • Sverre Grepperud
  • Pål Andreas Pedersen

Abstract

We introduce games consisting of two players where each player's payoff might be differently affected by changes in the decision variable of the rival. The games are classified into three categories: The high‐conflict category is characterized by both players having a first mover advantage, the medium‐conflict category by (at least) one player having a first mover advantage, and, the low‐conflict category by (at least) one player having a second mover advantage. The categories give rise to different equilibria in a prior game where the players are supposed to commit themselves to draw as early or as late as possible.

Suggested Citation

  • Sverre Grepperud & Pål Andreas Pedersen, 2022. "First and second mover advantages and the degree of conflicting interests," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1861-1873, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:1861-1873
    DOI: 10.1002/mde.3494
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    References listed on IDEAS

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    Cited by:

    1. Yousefimanesh, Niloofar & Bos, Iwan & Vermeulen, Dries, 2023. "Strategic rationing in Stackelberg games," Games and Economic Behavior, Elsevier, vol. 140(C), pages 529-555.

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