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On the choice of the penalty parameter for discrete-continuous linear bi-level problems reformulation

Author

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  • Massimiliano Caramia
  • Renato Mari

Abstract

In this paper we focus on linear bi-level problems in which the variables controlled by the leader are discrete. It is known that such problems are equivalent to continuous linear bi-level problems in which the integrality requirements are relaxed and the leader's objective function is modified including a concave penalty function weighted by a parameter µ. The equivalence holds for a sufficiently large value of µ. A valid lower bound for µ is known in the literature. In the following, we provide an improvement of this lower bound and experiment the new lower bound on a set of test problems.

Suggested Citation

  • Massimiliano Caramia & Renato Mari, 2015. "On the choice of the penalty parameter for discrete-continuous linear bi-level problems reformulation," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 7(1), pages 103-118.
    • Handle: RePEc:ids:ijmore:v:7:y:2015:i:1:p:103-118
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