Abstract

The paper deals with two-person static Stackelberg games with quadratic objectives and common linear constraints for the leader and the follower. Important properties of the rational reaction function of the follower could be derived from the outlined relations to the theory of parametric optimization. In the result the solution of the specified Stackelberg problem is reduced to the sequential solution of a finite number of standard constrained quadratic programming problems and the iterative selection of solution structures for the follower reaction. The implementation of the proposed algorithm stands on a large-scale nonlinear programming solver.

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