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A solution method for the static constrained Stackelberg problem via penalty method. (English) Zbl 0553.90104

This note presents a new solution method for the static constrained Stackelberg problem. Through our approach, the Stackelberg problem is completely transformed into a one-level unconstrained problem such that the newly introduced overall augmented objective function is minimized with respect to the leader’s and the follower’s variables jointly. It can be proved that a sequence of solutions to the transformed problems converges to the solution of the original problem, when the penalty parameters are updated.

MSC:

91A05 2-person games
90C90 Applications of mathematical programming
65K05 Numerical mathematical programming methods
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