gametheory101.com Under Stackelberg competition, firms sequentially select their production quantities. Who has the advantage compared to Cournot competition? At first, it may seem that the answer could go either way. The follower benefits from seeing what the leader has done and choosing the best it can do in response. The leader has the benefit of credibly committing to a quantity and forcing the follower to react to it. Which effect dominates? This lecture shows that the leader, in fact, always outperforms the Cournot outcome.