IEEE Transactions on Automatic Control, Vol.53, No.2, 621-625, 2008
On linear-quadratic Stackelberg games with time preference rates
This note deals with linear-quadratic Stackelberg differential games including time preference rates with an open-loop information structure. The properties of the characteristic matrix associated with the necessary conditions for a Stackelberg strategy are pointed out. It is shown that such a matrix exhibits a special symmetry property of its eigenvalues. Sufficient conditions to guarantee a predefined degree of stability are given based on the distribution of the eigenvalues in the complex plane.
Keywords:game theory;Hamiltonian matrix;Riccati equation;alpha-stability;Stackelberg strategy;time preference rate