In a number of oligopoly settings the order in which firms make decisions matters. For example, a firm that is considered an industry leader may set prices first, then other firms will react. The same may hold true for new product introductions, marketing campaigns, expansion to new markets and a wide variety of other decisions.
As we noted in the introduction, we use game trees to display these sequential games, games in which decisions are made sequentially. At this level we will continue to investigate only games of complete information, situations in which both players know everything displayed in the game tree.
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