Stackelberg Equilibria for Discrete-Time Dynamic Games - Part II: Stochastic Games with Deterministic Information Structure

Reference

K. Staňková and B. De Schutter, "Stackelberg equilibria for discrete-time dynamic games - Part II: Stochastic games with deterministic information structure," Proceedings of the 2011 IEEE International Conference on Networking, Sensing and Control, Delft, The Netherlands, pp. 255-260, Apr. 2011.

Abstract

We consider a two-person discrete-time dynamic game with a prespecified fixed duration. Each player maximizes her profit over the game horizon, taking decisions of the other player into account. Our goal is to find the Stackelberg equilibria for such a game. After having discussed deterministic Stackelberg games in the companion paper (Stackelberg Equilibria for Discrete-Time Dynamic Games - Part I: Deterministic Games), in this paper we focus on stochastic games with a deterministic information structure. While for the stochastic game with open-loop structure the solution procedure is straightforward and already reported in the literature, the problem with the closed-loop problem information structure for stochastic games remains a challenge. After discussing a rather standard approach to solve the open-loop stochastic game, we propose an approach to find (sub)optimal solutions of the closed-loop game. Moreover, we discuss solution approach for generalized games in which the leader has access to the follower's past actions, the so-called inverse Stackelberg games.

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Companion paper

BibTeX

@inproceedings{StaDeS:10-062,
   author    = {Sta{\v{n}}kov{\'{a}}, Kate{\v{r}}ina and De Schutter, Bart},
   title     = {Stackelberg Equilibria for Discrete-Time Dynamic Games -- {Part
                II: Stochastic} Games with Deterministic Information
                Structure},
   booktitle = {Proceedings of the 2011 IEEE International Conference on
                Networking, Sensing and Control},
   address   = {Delft, The Netherlands},
   pages     = {255--260},
   month     = apr,
   year      = {2011}
   }


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