One-leader and multiple-follower Stackelberg games with private information

•We analyze one-leader and multiple-follower Stackelberg games with uncertainty.•In the equilibrium, a leader's private signal becomes followers' public signal.•We define the weight on public signal about a follower's estimation of uncertainty.•The weight determines the leader-follower strategic relationship.•The leader can exit from a market when the relationship is strategic complement.

This study analyzes one-leader and multiple-follower Stackelberg games with demand uncertainty. We demonstrate that the weight on public information regarding a follower's estimation of demand uncertainty determines the strategic relationship between the leader and each follower. When the relationship is strategic complement, the leader can exit from a market. The threshold is determined by the intensity of Cournot competition among the followers.