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lines changed Original file line number Diff line number Diff line change @@ -43,6 +43,8 @@ and for all by the Stackelberg leader at time $0$.
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To facilitate computation and interpretation, we formulate things in a
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context that allows us to apply dynamic programming for linear-quadratic models.
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+ Technically, our calculations are closely related to ones described [ this lecture] ( https://python.quantecon.org/lagrangian_lqdp.html ) .
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From the beginning, we carry along a linear-quadratic model of duopoly in
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which firms face adjustment costs that make them want to forecast
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actions of other firms that influence future prices.
@@ -774,7 +776,7 @@ sequence $\vec q_2$, we must use representation
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$\check z^t$ and ** not** a corresponding representation cast in
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terms of $z^t$.
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- ### Dynamic Programming and Time Consistency of ** follower's ** Problem
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+ ### Dynamic Programming and Time Consistency of Follower's Problem
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Given the sequence $\vec q_2$ chosen by the Stackelberg leader in
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our duopoly model, it turns out that the Stackelberg ** follower's**
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