Heinrich Freiherr Von Stackelberg
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Heinrich Freiherr von Stackelberg (October 31, 1905 – October 12, 1946) was a German
economist An economist is a professional and practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
who contributed to
game theory Game theory is the study of mathematical models of strategic interactions. It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science. Initially, game theory addressed ...
and
industrial organization In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the per ...
and is known for the Stackelberg leadership model. Stackelberg became a member of the
Nazi Party The Nazi Party, officially the National Socialist German Workers' Party ( or NSDAP), was a far-right politics, far-right political party in Germany active between 1920 and 1945 that created and supported the ideology of Nazism. Its precursor ...
in 1931 and held the rank of ''
Scharführer ''Scharführer'' (, ) was a title or rank used in early 20th century German military terminology. In German, ''Schar'' was one term for the smallest sub-unit, equivalent to (for example) a "troop", "squad", or " section". The word ''führer'' ...
'' (sergeant) in the ''
Schutzstaffel The ''Schutzstaffel'' (; ; SS; also stylised with SS runes as ''ᛋᛋ'') was a major paramilitary organisation under Adolf Hitler and the Nazi Party in Nazi Germany, and later throughout German-occupied Europe during World War II. It beg ...
''.


Biography

Stackelberg was born in
Moscow Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...
into a
Baltic German Baltic Germans ( or , later ) are Germans, ethnic German inhabitants of the eastern shores of the Baltic Sea, in what today are Estonia and Latvia. Since Flight and expulsion of Germans (1944–1950), their resettlement in 1945 after the end ...
family of nobility from present-day
Estonia Estonia, officially the Republic of Estonia, is a country in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the Baltic Sea across from Sweden, to the south by Latvia, and to the east by Ru ...
. His mother was an Argentinian of Spanish descent. After the
October Revolution The October Revolution, also known as the Great October Socialist Revolution (in Historiography in the Soviet Union, Soviet historiography), October coup, Bolshevik coup, or Bolshevik revolution, was the second of Russian Revolution, two r ...
the family fled to Germany, first to Ratibor and later to
Cologne Cologne ( ; ; ) is the largest city of the States of Germany, German state of North Rhine-Westphalia and the List of cities in Germany by population, fourth-most populous city of Germany with nearly 1.1 million inhabitants in the city pr ...
. He studied economics and mathematics at the
University of Cologne The University of Cologne () is a university in Cologne, Germany. It was established in 1388. It closed in 1798 before being re-established in 1919. It is now one of the largest universities in Germany with around 45,187 students. The Universit ...
as an undergraduate. He graduated in 1927 with a thesis on the
Quasi-rent Quasi-rent or Marshallian rent is a temporary economic rent like returns to a supplier/owner. Alfred Marshall was the first to observe quasi-rents. Quasi-rent differs from pure economic rent in that it is a temporary phenomenon. It can arise from ...
in
Alfred Marshall Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist and one of the most influential economists of his time. His book ''Principles of Economics (Marshall), Principles of Economics'' (1890) was the dominant economic textboo ...
s work (). He continued his studies as a Ph.D. student in economics under Erwin von Beckerath. He graduated in 1930 with a dissertation on cost theory (), which was published in 1932 in Vienna. In 1934 he finished his
habilitation Habilitation is the highest university degree, or the procedure by which it is achieved, in Germany, France, Italy, Poland and some other European and non-English-speaking countries. The candidate fulfills a university's set criteria of excelle ...
on
market structure Market structure, in economics, depicts how firms are differentiated and categorised based on the types of goods they sell (homogeneous/heterogeneous) and how their operations are affected by external factors and elements. Market structure makes i ...
and
equilibrium Equilibrium may refer to: Film and television * ''Equilibrium'' (film), a 2002 science fiction film * '' The Story of Three Loves'', also known as ''Equilibrium'', a 1953 romantic anthology film * "Equilibrium" (''seaQuest 2032'') * ''Equilibr ...
(). After his habilitation he became a lecturer at the University of Cologne. After one semester he accepted a position at the
University of Berlin The Humboldt University of Berlin (, abbreviated HU Berlin) is a public research university in the central borough of Mitte in Berlin, Germany. The university was established by Frederick William III on the initiative of Wilhelm von Humbol ...
where he taught until 1941. In 1941, Stackelberg became
professor Professor (commonly abbreviated as Prof.) is an Academy, academic rank at university, universities and other tertiary education, post-secondary education and research institutions in most countries. Literally, ''professor'' derives from Latin ...
of economics at the
University of Bonn The University of Bonn, officially the Rhenish Friedrich Wilhelm University of Bonn (), is a public research university in Bonn, North Rhine-Westphalia, Germany. It was founded in its present form as the () on 18 October 1818 by Frederick Willi ...
. In 1944, Stackelberg left Germany for
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
, where he became a visiting professor at the
Complutense University of Madrid The Complutense University of Madrid (, UCM; ) is a public research university located in Madrid. Founded in Alcalá in 1293 (before relocating to Madrid in 1836), it is one of the oldest operating universities in the world, and one of Spain's ...
. He died of
lymphoma Lymphoma is a group of blood and lymph tumors that develop from lymphocytes (a type of white blood cell). The name typically refers to just the cancerous versions rather than all such tumours. Signs and symptoms may include enlarged lymph node ...
in 1946. He is buried in the
British Cemetery in Madrid The British Cemetery in Madrid (''Cementerio británico de Madrid'' or ''Cementerio de los Ingleses'') was opened in 1854 in the Carabanchel district of Madrid, Spain, and the first burials took place that year. Few burials take place in the ceme ...
. Stackelberg became a member of the
Nazi Party The Nazi Party, officially the National Socialist German Workers' Party ( or NSDAP), was a far-right politics, far-right political party in Germany active between 1920 and 1945 that created and supported the ideology of Nazism. Its precursor ...
in 1931 and became a
Scharführer ''Scharführer'' (, ) was a title or rank used in early 20th century German military terminology. In German, ''Schar'' was one term for the smallest sub-unit, equivalent to (for example) a "troop", "squad", or " section". The word ''führer'' ...
(Sergeant) in the SS in 1933. However, his interactions with many German aristocrats opposed to the Nazi regime (some of whom were within his immediate family), led to his increased disillusionment with that movement to the extent that towards the end of his life he no longer supported it.


Research

The Stackelberg leadership model is a model of a
duopoly A duopoly (from Greek , ; and , ) is a type of oligopoly where two firms have dominant or exclusive control over a market, and most (if not all) of the competition within that market occurs directly between them. Duopoly is the most commonly ...
. In a standard Stackelberg duopoly situation there are two firms in a market. The number of firms is restricted to two by assuming barriers to entry. Each firm is taking into account its competitors' decision on the quantity produced. Unlike in the
Cournot game Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine A ...
firms act sequentially, with the ''leader'' choosing a quantity first. The ''follower'' observes the decision of the ''leader'' and chooses his quantity. There are some further constraints upon the sustaining of a Stackelberg equilibrium. The leader must know ''
ex ante The term (sometimes written or ) is a New Latin phrase meaning "before the event". In economics, ''ex-ante'' or notional demand refers to the desire for goods and services that is not backed by the ability to pay for those goods and servi ...
'' that the follower observes his action. The follower must have no means of committing to a future non-Stackelberg follower action and the leader must know this. Indeed, if the 'follower' could commit to a Stackelberg leader action and the 'leader' knew this, the leader's best response would be to play a Stackelberg follower action. More generally, in a Stackelberg game one player moves before the other player, which can provide either a
first-mover advantage In marketing strategy, first-mover advantage (FMA) is the competitive advantage gained by the initial ("first-moving") significant occupant of a market segment. First-mover advantage enables a company or firm to establish strong brand recogniti ...
or a first-mover disadvantage, depending on the specific assumptions that are made in the game. Other well-known games are the Bertrand game and the
Cournot game Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine A ...
. The
Nash equilibrium In game theory, the Nash equilibrium is the most commonly used solution concept for non-cooperative games. A Nash equilibrium is a situation where no player could gain by changing their own strategy (holding all other players' strategies fixed) ...
plays an important role in solving the Stackelberg game and other games.


See also

* Stackelberg competition


Publications

* ''Grundlagen einer reinen Kostentheorie (Foundations of Pure Cost Theory)'',
Vienna Vienna ( ; ; ) is the capital city, capital, List of largest cities in Austria, most populous city, and one of Federal states of Austria, nine federal states of Austria. It is Austria's primate city, with just over two million inhabitants. ...
, 1932 * ''Marktform und Gleichgewicht (Market Structure and Equilibrium)'',2011, Translated by Bazin, Damien, Hill, Rowland, Urch, Lynn
Vienna Vienna ( ; ; ) is the capital city, capital, List of largest cities in Austria, most populous city, and one of Federal states of Austria, nine federal states of Austria. It is Austria's primate city, with just over two million inhabitants. ...
, 193
Website for the book
* ''Grundlagen der theoretischen Volkswirtschaftslehre (Foundations of Theoretical Economics)'',
Bern Bern (), or Berne (), ; ; ; . is the ''de facto'' Capital city, capital of Switzerland, referred to as the "federal city".; ; ; . According to the Swiss constitution, the Swiss Confederation intentionally has no "capital", but Bern has gov ...
, 1948 * ''The Theory of the Market Economy'',
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
, 1952 * ''Foundations of a Pure Cost Theory'', 2014, Translated by Bazin, Damien, Hill, Rowland, Urch, Lyn
Website for the book


References

{{DEFAULTSORT:Stackelberg, Heinrich Freiherr von 1905 births 1946 deaths People of Baltic German descent German barons Russian emigrants to Germany SS non-commissioned officers University of Cologne alumni Academic staff of the Humboldt University of Berlin Academic staff of the University of Bonn 20th-century German economists Heinrich Freiherr von Nobility in the Nazi Party Deaths from lymphoma in Spain Academic staff of the Complutense University of Madrid