Three-level incentive schemes using follower's strategies in differential games

Abstract

We deal with three-level incentive differential games in which first and second leaders have access not only to slate information but also to information on follower's strategies. We derive sufficient conditions for three-level incentive schemes using information on follower's strategies in both linear and non-linear differential games, and show that three-level incentive schemes using information on follower's strategies depend on an initial state value.