# 97-073/1 (1997-07-03)

Maarten C.W. Janssen, University of Vienna, Austria; Emiel Maasland, Erasmus University Rotterdam, the Netherlands

This note studies a version of the Stackelberg model in which the Leader has more information aboutdemand than the Follower. We show that there exists a unique D1 equilibrium and that this equilibriumis perfectly revealing. We also give a full characterization of the equilibrium in terms of the posteriorbeliefs of the Follower and show under which condition there is first mover disadvantage.