Abstract
Our purpose is to study the Stackelberg duopoly with the use of the Li–Du–Massar quantum duopoly scheme. The result of Lo and Kiang has shown that the correlation of players's quantities caused by the quantum entanglement enlarges the first-mover advantage in the quantum Stackelberg duopoly. However, the interval of entanglement parameters for which this result is valid is bounded from above. It has been an open question what the equilibrium result is over the upper bound, in particular when the entanglement parameter goes to infinity. Our work provides complete analysis of subgame perfect equilibria of the game for all the values of the entanglement parameter.
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