A Bicriteria Perspective on L-Penalty Approaches – a Corrigendum to Siddiqui and Gabriel’s L-Penalty Approach for Solving MPECs
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This paper presents a corrigendum to Theorems 2 and 3 in Siddiqui and Gabriel (Netw Spatial Econ 13(2):205–227, 2013). In brief, we revise the claim that their L-penalty approach yields a solution satisfying complementarity for any positive value of L, in general. This becomes evident when interpreting the L-penalty method as a weighted-sum scalarization of a bicriteria optimization problem. We also elaborate further assumptions under which the L-penalty approach yields a solution satisfying complementarity.
KeywordsEquilibrium problems MPEC L-penalty method Bicriteria optimization
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