1. describe the difference between the Stackelburg and the Cournot duopoly models. Outline the process by which a Stackelburg equilibrium is reached.
2. Outline the ‘Kinked Demand Curve' theory of oligopoly and account for price rigidity in this model.
3. Present and critically appraise Fellner's theory of price leadership.
4. Carefully describe the concept of the reaction function in duopoly analysis.