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 |