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1 | Introduction | 1 |
2 | Applications | 7 |
2.1 | Stackelberg games | 7 |
2.2 | Optimal chemical equilibria | 11 |
2.3 | Environmental economics | 12 |
2.4 | Discrimination between sets | 15 |
3 | Linear Bilevel Problems | 21 |
3.1 | The model and one example | 21 |
3.2 | The geometric nature of linear bilevel programming | 24 |
3.3 | Existence of optimal solutions | 27 |
3.4 | Relations to other MP problems | 31 |
3.5 | Optimality conditions | 36 |
3.6 | Solution algorithms | 47 |
4 | Parametric Optimization | 61 |
4.1 | Optimality conditions | 62 |
4.2 | Upper semicontinuity of the solution set mapping | 64 |
4.3 | Piecewise continuously differentiable functions | 70 |
4.4 | Properties of optimal solutions | 75 |
4.5 | Properties of the optimal value function | 88 |
5 | Optimality Conditions | 119 |
5.1 | Optimality concepts | 121 |
5.2 | Optimality conditions based on strong stability | 129 |
5.3 | The contingent cone to the feasible set | 135 |
5.4 | Regularity | 145 |
5.5 | Optimality conditions using the KKT reformulation | 149 |
5.6 | The approach via the lower level optimal value function | 155 |
5.7 | Generalized PC[superscript 1] functions | 158 |
6 | Solution Algorithms | 193 |
6.1 | A descent algorithm | 194 |
6.2 | A bundle algorithm | 200 |
6.3 | Penalty methods | 209 |
6.4 | A trust region method | 211 |
6.5 | Smoothing methods | 215 |
7 | Nonunique Lower Level Solution | 217 |
7.1 | Approximation of desired solutions | 218 |
7.2 | Stability of bilevel problems | 226 |
7.3 | Special perturbations | 230 |
8 | Discrete Bilevel Problems | 255 |
8.1 | Two introductory examples | 255 |
8.2 | Cutting plane algorithm | 258 |
8.3 | Inner approximation | 264 |
8.4 | Knapsack lower level problems | 266 |
References | 283 | |
Notations | 303 | |
Index | 305 |
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