Derivation of necessary and sufficient conditions for single-stage Stackelberg games via the inducible region concept

The inducible region is defined as the collection of all the possible outcomes. It is typically a subset of the entire decision space. The best the leader can obtain is then the optimal outcome in this inducible region. Necessary and sufficient conditions are derived by first delineating the inducible region, and then obtaining a leader's optimal strategy, if it exists. If not, an ε-strategy always exists, provided that the leader's Stackelberg cost is bounded.