  We study the influence of entanglement and correlated noise using correlated
amplitude damping, depolarizing and phase damping channels on the quantum
Stackelberg duopoly. Our investigations show that under the action of amplitude
damping channel a critical point exists for unentangled initial state as well,
at which firms get equal payoffs. The game becomes a follower advantage game
when the channel is highly decohered. Two critical points corresponding to two
values of the entanglement angle are found in the presence of correlated noise.
Within the range of these limits of entanglement angle, the game is follower
advantage game. In case of depolarizing channel, the payoffs of the two firms
are strongly influenced by the memory parameter. The presence of quantum memory
ensures the existence of Nash equilibrium for the entire range of decoherence
and entanglement parameters for both the channels. A local maximum in the
payoffs is observed which vanishes as the channel correlation increases.
Moreover, under the influence of depolarizing channel, the game is always a
leader advantage game. Furthermore, it is seen that phase damping channel does
not effect the outcome of the game.
