A Bundle Algorithm Applied to BilevelProgramming Problems with Non-Unique LowerLevel Solutions

  • Authors:
  • S. Dempe

  • Affiliations:
  • Freiberg University of Mining and Technology, Freiberg, Germany. dempe@math.tu-freiberg.de

  • Venue:
  • Computational Optimization and Applications
  • Year:
  • 2000

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Abstract

In the paper, the question isinvestigated if a bundle algorithm can be usedto compute approximate solutions for bilevelprogramming problems where the lower leveloptimal solution is in general not uniquelydetermined. To give a positive answer to thisquestion, an appropriate regularizationapproach is used in the lower level. In thegeneral case, the resulting algorithm computesan approximate solution. If the problem provesto have strongly stable lower level solutionsfor all parameter values in a certainneighborhood of the stationary solutions of thebilevel problem, convergence to stationarysolutions can be shown.