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Distributed renewable resources owned by prosumers can be an effective way of fortifying grid resilience and enhancing sustainability. However, prosumers serve their own interests and their objectives are unlikely to align with that of…

Systems and Control · Electrical Eng. & Systems 2022-09-30 Yihsu Chen , Andrew L. Liu , Makoto Tanaka , Ryuta Takashima

In this work, we propose derivative-free framework for bilevel optimization. We consider both the upper and lower-level problems with bound constraints on the variables, as well as general nonlinear constraints, assuming that first-order…

Optimization and Control · Mathematics 2026-03-24 Edoardo Cesaroni , Giampaolo Liuzzi , Stefano Lucidi

We consider the standard optimistic bilevel optimization problem, in particular upper- and lower-level constraints can be coupled. By means of the lower-level value function, the problem is transformed into a single-level optimization…

Optimization and Control · Mathematics 2019-12-17 Andreas Fischer , Alain B. Zemkoho , Shenglong Zhou

Bilevel optimization (BLO) problem, where two optimization problems (referred to as upper- and lower-level problems) are coupled hierarchically, has wide applications in areas such as machine learning and operations research. Recently, many…

Optimization and Control · Mathematics 2025-05-19 Xiaotian Jiang , Ioannis Tsaknakis , Prashant Khanduri , Mingyi Hong

In this paper, we propose a bilateral peer-to-peer (P2P) energy trading scheme under single-contract and multi-contract market setups, both as an assignment game, and a special class of coalitional games. {The proposed market formulation…

Computer Science and Game Theory · Computer Science 2023-01-31 Aitazaz Ali Raja , Sergio Grammatico

This paper aims to solve a class of CEC benchmark constrained optimization problems that have been widely studied by nature-inspired optimization algorithms. Global optimality condition based on canonical duality theory is derived.…

Optimization and Control · Mathematics 2016-04-05 Xiaojun Zhou

Second-order optimality conditions of the bilevel programming problems are dependent on the second-order directional derivatives of the value functions or the solution mappings of the lower level problems under some regular conditions,…

Optimization and Control · Mathematics 2023-07-24 Xiang Liu , Mengwei Xu , Liwei Zhang

It is well known that bilevel optimization problems are hard to solve both in theory and practice. In this paper, we highlight a further computational difficulty when it comes to solving bilevel problems with continuous but nonconvex lower…

Optimization and Control · Mathematics 2023-05-04 Yasmine Beck , Daniel Bienstock , Martin Schmidt , Johannes Thürauf

Maintaining energy balance and economical operation is significant for multi-energy systems such as the energy hub. However, it is usually challenged by the frequently changing and unpredictable uncertainties at different timescales. Under…

Computational Engineering, Finance, and Science · Computer Science 2022-03-03 Jiaxin Cao , Bo Yang , Shanying Zhu , Chi Yung Chung , Xinping Guan

Stochastic bilevel optimization finds widespread applications in machine learning, including meta-learning, hyperparameter optimization, and neural architecture search. To extend stochastic bilevel optimization to distributed data, several…

Machine Learning · Computer Science 2026-05-26 Yihan Zhang , My T. Thai , Jie Wu , Hongchang Gao

Optimization problems with discrete decisions are nonconvex and thus lack strong duality, which limits the usefulness of tools such as shadow prices and the KKT conditions. It was shown in Burer(2009) that mixed-binary quadratic programs…

Optimization and Control · Mathematics 2021-01-27 Cheng Guo , Merve Bodur , Joshua A. Taylor

Energy storage is expected to play an increasingly important role in mitigating variations that come along with the growing penetration of renewable energy. In this paper, we study the optimal bidding of an energy storage unit in a…

Optimization and Control · Mathematics 2021-09-29 Yue Chen , Wei Wei , Tongxin Li , Yunhe Hou , Feng Liu , João P. S. Catalão

This work proposes an uncertainty-informed bid adjustment framework for integrating variable renewable energy sources (VRES) into electricity markets. This framework adopts a bilevel model to compute the optimal VRES day-ahead bids. It aims…

Systems and Control · Electrical Eng. & Systems 2023-12-08 Dongwei Zhao , Vladimir Dvorkin , Stefanos Delikaraoglou , Alberto J. Lamadrid L. , Audun Botterud

We study a bilevel \emph{max-max} optimization framework for principal-agent contract design, in which a principal chooses incentives to maximize utility while anticipating the agent's best response. This problem, central to moral hazard…

Machine Learning · Computer Science 2025-10-27 Tomer Galanti , Aarya Bookseller , Korok Ray

Nonconvexities in markets with discrete decisions and nonlinear constraints make efficient pricing challenging, often necessitating subsidies. A prime example is the unit commitment (UC) problem in electricity markets, where costly…

Optimization and Control · Mathematics 2026-02-18 Cheng Guo , Lauren Henderson , Ryan Cory-Wright , Boshi Yang

This paper presents a comprehensive analytical study of two competitive cognitive operators' spectrum leasing and pricing strategies, taking into account operators' heterogeneity in leasing costs and users' heterogeneity in transmission…

Networking and Internet Architecture · Computer Science 2016-11-17 Lingjie Duan , Jianwei Huang , Biying Shou

We consider bilevel linear problems, where the right-hand side of the lower level problems is stochastic. The leader has to decide in a here-and-now fashion, while the follower has complete information. In this setting, the leader's outcome…

Optimization and Control · Mathematics 2019-07-11 Johanna Burtscheidt , Matthias Claus

This study develops a scalable co-optimization strategy for the joint bidding of cascaded hydropower, wind, and solar energy units, treated as a unified entity in the day-ahead market. Although hydropower flexibility can manage the…

Optimization and Control · Mathematics 2025-11-10 Luca Santosuosso , Simon Camal , Arthur Lett , Guillaume Bontron , Jalal Kazempour , Georges Kariniotakis

This paper studies bilevel polynomial optimization problems. To solve them, we give a method based on polynomial optimization relaxations. Each relaxation is obtained from the Kurash-Kuhn-Tucker (KKT) conditions for the lower level…

Optimization and Control · Mathematics 2021-06-11 Jiawang Nie , Li Wang , Jane Ye , Suhan Zhong

Energy forecasting is an essential task in power system operations. Operators usually issue forecasts and leverage them to schedule energy dispatch ahead of time. However, forecast models are typically developed in a way that overlooks the…

Systems and Control · Electrical Eng. & Systems 2024-12-17 Yufan Zhang , Mengshuo Jia , Honglin Wen , Yuexin Bian , Yuanyuan Shi
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