The Stackelberg model is a game theory model used to analyze the behavior of firms in an oligopoly market. In this model, one firm is considered the leader, and the other firms are considered followers. The leader firm sets its output level first, and the follower firms then choose their output levels based on the leader's output.

The Stackelberg model assumes that the leader firm has a significant advantage over the follower firms. This advantage could be due to economies of scale, access to superior technology, or better market knowledge. As a result, the leader firm can set a higher output level than the follower firms.

The follower firms, on the other hand, must take into account the leader's output level when setting their output levels. They know that if they set their output levels too high, they will not be able to sell all their products, and their profits will suffer. Conversely, if they set their output levels too low, they will miss out on potential profits.

The Stackelberg model predicts that the leader firm will set a higher output level than the follower firms. This is because the leader firm can take advantage of its position to maximize its profits. The follower firms will then set their output levels based on the leader's output level, resulting in lower profits for them.

Overall, the Stackelberg model shows that the behavior of firms in an oligopoly market is influenced by their position in the market and their ability to set output levels. The leader firm has a significant advantage over the follower firms and can use this advantage to maximize its profits.