Analysis of market structure with dynamic game

The research of the efficiency of different market structures is a lasting topic for the theorists, and the answers to this problem are not as same as each other. This paper uses an extended Stackelberg model with multi-participator and multi-stage to analyze the choices of the leading company and the following companies in the dynamic game, and compares the optimal quantity, the price and the profit of each company. The result is that proper degree of industry concentration is desirable, and the market structure containing one leader and many followers is dominant for consumers and is efficient and stable.