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Backward induction algorithm for a class of closed-loop Stackelberg games

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  • Kicsiny, R.
  • Varga, Z.
  • Scarelli, A.

Abstract

In the paper a new deterministic continuum-strategy two-player discrete-time dynamic Stackelberg game is proposed with fixed finite time duration and closed-loop information structure. The considered payoff functions can be widely used in different applications (mainly in conflicts of consuming a limited resource, where one player, called leader, is a superior authority choosing strategy first, and another player, called follower, chooses after).

Suggested Citation

  • Kicsiny, R. & Varga, Z. & Scarelli, A., 2014. "Backward induction algorithm for a class of closed-loop Stackelberg games," European Journal of Operational Research, Elsevier, vol. 237(3), pages 1021-1036.
    • Handle: RePEc:eee:ejores:v:237:y:2014:i:3:p:1021-1036
    DOI: 10.1016/j.ejor.2014.02.057
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    10. Heinrich von Stackelberg, 2011. "Market Structure and Equilibrium," Springer Books, Springer, number 978-3-642-12586-7, November.
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    12. Benchekroun, Hassan & Withagen, Cees, 2012. "On price taking behavior in a nonrenewable resource cartel–fringe game," Games and Economic Behavior, Elsevier, vol. 76(2), pages 355-374.
    13. Hoffmann, Magnus & Rota-Graziosi, Grégoire, 2012. "Endogenous timing in general rent-seeking and conflict models," Games and Economic Behavior, Elsevier, vol. 75(1), pages 168-184.
    14. G. Freiling & G. Jank & S. R. Lee, 2001. "Existence and Uniqueness of Open-Loop Stackelberg Equilibria in Linear-Quadratic Differential Games," Journal of Optimization Theory and Applications, Springer, vol. 110(3), pages 515-544, September.
    15. Alemdar, Nedim M. & Sirakaya, Sibel, 2003. "On-line computation of Stackelberg equilibria with synchronous parallel genetic algorithms," Journal of Economic Dynamics and Control, Elsevier, vol. 27(8), pages 1503-1515, June.
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    Citations

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    Cited by:

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    6. Chen, Yang & Park, Byungkwon & Kou, Xiao & Hu, Mengqi & Dong, Jin & Li, Fangxing & Amasyali, Kadir & Olama, Mohammed, 2020. "A comparison study on trading behavior and profit distribution in local energy transaction games," Applied Energy, Elsevier, vol. 280(C).
    7. Marian Leimbach & Anselm Schultes & Lavinia Baumstark & Anastasis Giannousakis & Gunnar Luderer, 2017. "Solution algorithms for regional interactions in large-scale integrated assessment models of climate change," Annals of Operations Research, Springer, vol. 255(1), pages 29-45, August.

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