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Approximations in Multi-Leader-Multi-Follower Games via Variational Inequalities

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Problems associated to Multi-Leader-Multi-Follower games may fail to have solutions, particularly in the case of pessimistic behavior of the leaders. In this paper, we propose to obviate to this deficiency by introducing approximate and viscosity solutions constructed with the aid of suitable approximate Nash equilibria of the second stage game. More specifically, the parametric followers Nash equilibrium problem is approximated by using Minty variational inequalities or classical variational inequalities and it is shown, among others, that approximate and viscosity solutions of the pessimistic Multi-Leader-Multi-Follower problem exist under not restrictive assumptions when we use Minty’s variational inequalities.

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  • M. Beatrice Lignola & Jacqueline Morgan, 2026. "Approximations in Multi-Leader-Multi-Follower Games via Variational Inequalities," CSEF Working Papers 772, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:772
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    1. Francesco Caruso & M. Beatrice Lignola & Jacqueline Morgan, 2020. "Regularization and Approximation Methods in Stackelberg Games and Bilevel Optimization," Springer Optimization and Its Applications, in: Stephan Dempe & Alain Zemkoho (ed.), Bilevel Optimization, chapter 0, pages 77-138, Springer.
    2. M. Beatrice Lignola & Jacqueline Morgan, 2014. "Viscosity Solutions for Bilevel Problems with Nash Equilibrium Constraints," CSEF Working Papers 367, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 02 Oct 2014.
    3. Lina Mallozzi & Roberta Messalli, 2017. "Multi-Leader Multi-Follower Model with Aggregative Uncertainty," Games, MDPI, vol. 8(3), pages 1-14, June.
    4. Jong-Shi Pang & Masao Fukushima, 2005. "Quasi-variational inequalities, generalized Nash equilibria, and multi-leader-follower games," Computational Management Science, Springer, vol. 2(1), pages 21-56, January.
    5. Giovanni Facchini & Freek van Megen & Peter Borm & Stef Tijs, 1997. "Congestion Models And Weighted Bayesian Potential Games," Theory and Decision, Springer, vol. 42(2), pages 193-206, March.
    6. M. Beatrice Lignola & Jacqueline Morgan, 2017. "Inner Regularizations and Viscosity Solutions for Pessimistic Bilevel Optimization Problems," Journal of Optimization Theory and Applications, Springer, vol. 173(1), pages 183-202, April.
    7. Didier Aussel & Anton Svensson, 2020. "A Short State of the Art on Multi-Leader-Follower Games," Springer Optimization and Its Applications, in: Stephan Dempe & Alain Zemkoho (ed.), Bilevel Optimization, chapter 0, pages 53-76, Springer.
    8. M. Lignola & Jacqueline Morgan, 2012. "Approximate values for mathematical programs with variational inequality constraints," Computational Optimization and Applications, Springer, vol. 53(2), pages 485-503, October.
    9. Maria Carmela Ceparano & Jacqueline Morgan, 2017. "Equilibrium selection in multi-leader-follower games with vertical information," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(3), pages 526-543, October.
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