Abstract
The concept of Stackelberg strategy for a nonzero-sum two-person game is extended to allow for a nonunique “rational” response of the follower. This leads to the notion of a generalized Stackelberg strategy for the leader, which guarantees him a cost value that cannot be exceeded, no matter what the “rational” response of the follower. Then, a generalized Stackelberg strategy pair is defined. A simple example is given. The idea of a generalized Stackelberg strategy and strategy pair is then applied to the situation of one leader and many “rational” followers.
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References
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This paper is based on research supported by the National Science Foundation.
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Leitmann, G. On generalized Stackelberg strategies. J Optim Theory Appl 26, 637–643 (1978). https://doi.org/10.1007/BF00933155
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DOI: https://doi.org/10.1007/BF00933155