Previous experimental results on one-shot sequential two-player games show that group decisions are closer to the subgame-perfect Nash equilibrium than individual decisions. We extend the analysis of inter-group versus inter-individual decision making by running both one-shot and repeated...

This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good to an imperfectly competitive input market. We apply the taxonomy of business strategies introduced by Fudenberg and Tirole (1984) to characterize the different equilibria. We...

Stackelberg equilibrium is a solution concept that describes optimal strategies to commit: Player 1 (the leader ) first commits to a strategy that is publicly announced, then Player 2 (the follower ) plays a best response to the leader’s commitment. We study the problem of computing...