Algorithmic schemes for non-smooth simple bilevel programming problem and simple MPEC problem

Abstract

ABSTRACT This article continues our study on simple bilevel and simple MPEC problems. In this article, we focus on developing algorithms. We show how using the idea of a gap function one can represent a simple MPEC as a simple bilevel problem with non-smooth data. This motivates us first to develop an algorithm for a simple bilevel problem with non-smooth data and modify the scheme for the same to develop an algorithm for the simple MPEC problem. We also discuss how the simple bilevel formulation of a simple MPEC can help us in formulating a stopping criteria for the simple MPEC problem.