Top Dog Vs Puppy Dog Strategy

The sophisticated firm (leader firm) shall play top dog strategy when the follower firm is operating under Stackelberg assumption. The goal of the leader firm is to produce more output and force the follower firm to produce less.
On the other hand, the sophisticated firm shall play puppy dog strategy when follower firm is operating under Bertrand’s assumption. Once again the objective of the sophisticated firm is to induce the follower firm to compete less aggressively.
This is achieved by the follower firm by charging a slightly high price and also forces follower firm to charge high price.