About the latest definition (a Stackelberg game is a game/competition where the player in leading position is also the first mover)…

One may consider it’s the ‘natural’ order of things, but think twice: most of the time, when someone is in a leading position, it’s his best interest to keep the status quo.

It means the best choice… is to follow the strategy of the player behind, rather than taking risks.

And indeed, that happens in sailboats racing (yes, it’s called a regatta!).
Once a boat is leading, she often mimics the moves of the boat behind, so the distance between the two always remain the same until the finish line.

At last, it gives big corporations a strong justification NOT to innovate!

This entry was posted on Monday, February 9th, 2009 at 9:06 pm and is filed under Economics, Gaming the System. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.