Newton-type method for bilevel programs with linear lower level problem and application to toll optimization
Optimization and Control
2020-10-23 v1
Abstract
We consider a bilevel program involving a linear lower level problem with left-hand-side perturbation. We then consider the Karush-Kuhn-Tucker reformulation of the problem and subsequently build a tractable optimization problem with linear constraints by means of a partial exact penalization. A semismooth system of equations is then generated from the later problem and a Newton-type method is developed to solve it. Finally, we illustrate the convergence and practical implementation of the algorithm on the optimal toll-setting problem in transportation networks.
Cite
@article{arxiv.2010.11662,
title = {Newton-type method for bilevel programs with linear lower level problem and application to toll optimization},
author = {Floriane Mefo Kue and Thorsten Raasch and Alain B. Zemkoho},
journal= {arXiv preprint arXiv:2010.11662},
year = {2020}
}