I consider a optimal control problem of Leader-Follower model, in which the cost functional for both are maximizes their profit. Clearly one player's profit does not imply that another player's loss. So this model is not a Zero sum game. This is non zero sum game. For non zero sum game we use Nash equilibrium.
My question is,
Is Leader-Follower model gives stackelberg equilibrium?
Is Leader-Follower model is non-zero sum game? (If both are maximizes their profit)
If this model is non-zero sum game then I can get Nash equilibrium.
How to differ Nash equilibrium with stackelberg equilibrium?
Kindly any one suggest me to get clear idea about Leader-Follower model.
Dear Deppa Ravi,
I suggest you to see links and attached files in topics.
- Nash and Stackelberg Solutions to General Linear ... - Kybernetika
www.kybernetika.cz/content/1978/1/38/paper.pdf
- Game Theory and Models of Oligopoly
flash.lakeheadu.ca/~mshannon/micro17d.docx
- Equilibria in Finite Games - Computer Science Intranet - University of ...
https://cgi.csc.liv.ac.uk/~sven/AnshulGupta.pdf
Bestregards
you should also have a look at the book of Basar and Olsder
Article Dynamic Non-Cooperative Game Theory
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