On Forchheimer's Model of Dominant Firm Price Leadership

We show that in a simple price-setting game with one large firm and many small firms the large firm does not accept the role of the price leader.

Quantity-setting games with a dominant firm

We consider a possible game-theoretic foundation of Forchheimer's model of dominant-firm price leadership based on quantity-setting games with one large firm and many small firms. If the large firm is the exogenously given first mover, we obtain Forchheimer's model. We also investigate whether the large firm can emerge as a first mover of a timing game.