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Two-Stage Approach for Quantitative Policy Analysis Using Bilevel Programming

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Abstract

Quantitative policy analysis problems with hierarchical decision-making can be modeled as bilevel mathematical programming problems. In general, the solution of these models is very difficult; however, special cases exist in which an optimal solution can be obtained by ordinary mathematical programming techniques. In this paper, a two-stage approach for the formulation, construction, solution, and usage of bilevel policy problem is presented. An outline of an example for analyzing Israel's public expenditure policy is also given.

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Authors and Affiliations

  1. Breiner Consulting, Tivon, Israel

    A. Breiner (Principal)

  2. Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Haifa, Israel

    M. Avriel (Abraham Tulin Professor of Operations Research)

Authors
  1. A. Breiner
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  2. M. Avriel
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Breiner, A., Avriel, M. Two-Stage Approach for Quantitative Policy Analysis Using Bilevel Programming. Journal of Optimization Theory and Applications 100, 15–27 (1999). https://doi.org/10.1023/A:1021760713627

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  • DOI: https://doi.org/10.1023/A:1021760713627

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