Abstract
This paper is mainly concerned with the derivation of the sufficient conditions for the incentive Stackelberg strategy in the two-level hierarchical differential games with two noncooperative followers, characterized by a classof linear state dynamics and quadratic cost functionals. In the paper, we first give some concepts in the two-level hierarchical games with two noncooperative followers, and by a simple numerical example, show a general method of solving such a two-level incentive static game problem. Then, we construct a new form of the incentive Stackelberg strategy \(\bar \gamma _0 = \left\{ {\bar \gamma _{0 1} ,\bar \gamma _{0 2} } \right\}\) of the leader P0, and also derive the sufficient conditions which are satisfied by this strategy \(\bar \gamma _0 = \left\{ {\bar \gamma _{0 1} ,\bar \gamma _{0 2} } \right\}\).
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