A quadratic objective penalty function for bilevel programming

• DOI: 10.1007/s11424-014-2128-7
• Publication Date: 2014-04-07T07:16:53Z
• Authors: Min Jiang; Zhiqing Meng; Rui Shen; Xinsheng Xu
• Keywords: Bilevel optimization; Penalty Method; Convexity; Sequential quadratic programming

The bilevel programming is applied to solve hierarchical intelligence control problems in such fields as industry, agriculture, transportation, military, and so on. This paper presents a quadratic objective penalty function with two penalty parameters for inequality constrained bilevel programming. Under some conditions, the optimal solution to the bilevel programming defined by the quadratic objective penalty function is proved to be an optimal solution to the original bilevel programming. Moreover, based on the quadratic objective penalty function, an algorithm is developed to find an optimal solution to the original bilevel programming, and its convergence proved under some conditions. Furthermore, under the assumption of convexity at lower level problems, a quadratic objective penalty function without lower level problems is defined and is proved equal to the original bilevel programming.