Quantum Stackelberg duopoly game with isoelastic demand function

We apply Frackiewicz's scheme to investigate a quantum Stackelberg duopoly game with isoelastic demand function and unequal marginal costs. We analyze the existence conditions of quantum equilibrium, and the influences of relative marginal cost (m) and degree of quantum entanglement (gamma) on the optimal profits and the first-mover advantage in theory. We demonstrate the theoretical analysis by numerical simulations. The results show that an increase of m will increase one player's profit, but will decrease the other player's profit for any fixed gamma. An increase of gamma will increase both players' profits for any fixed m. An increase of gamma will enhance the first-mover advantage for 0 < m < 1, but will suppress it for 1 < m < 2. (C) 2020 Elsevier B.V. All rights reserved.