Skip to main content

A Short State of the Art on Multi-Leader-Follower Games

  • Chapter
  • First Online:
Bilevel Optimization

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 161))

Abstract

Multi-Leader-Follower games are complex optimization problems that mix a bilevel structure with one or more Nash games. Such kinds of models have been already described in the seminal book of H. von Stackelberg ((1934)Marktform und Gleichgewicht. Springer, Berlin); von Stackelberg et al. ((2011) Market structure and equilibrium. Springer, Heidelberg) and are known to perfectly fit to a lot of applications involving non cooperative situations with hierarchical interactions. Nevertheless it is only recently that theoretical and numerical developments for Multi-Leader-Follower problems have been made. This chapter aims to propose a state of the art of this field of research at the frontier between optimization and economics.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

Notes

  1. 1.

    Equilibrium Problem with Complementarity Constraints

References

  1. H. von Stackelberg, Marktform und Gleichgewicht (Springer, Berlin, 1934)

    Google Scholar 

  2. H. von Stackelberg, D. Bazin, L. Urch, R. Hill, Market Structure and Equilibrium (Springer, Heidelberg, 2011)

    Book  Google Scholar 

  3. F. Facchinei, J.-S. Pang, Finite-Dimensional Variational Inequalities and Complementarity Problems, vol. I and II (Springer, Berlin, 2003)

    Google Scholar 

  4. H.I. Calvete, C. Galé, Linear bilevel multi-follower programming with independent followers. J. Glob. Optim. 39(3), 409–417 (2007)

    Article  Google Scholar 

  5. M.A. Ramos, M. Boix, D. Aussel, L. Montastruc, S. Domenech, Water integration in eco-industrial parks using a multi-leader-follower approach. Comput. Chem. Eng. 87, 190–207 (2016)

    Article  Google Scholar 

  6. M. Ramos, M. Boix, D. Aussel, L. Montastruc, P. Vilamajo, S. Domenech, Water exchanges in eco-industrial parks through multiobjective optimization and game theory. Comput. Aided Chem. Eng. 37, 1997–2002 (2015)

    Article  Google Scholar 

  7. D. Salas, V.K. Cao, L. Montastruc, D. Aussel, Optimal design of exchange networks with blind inputs—part 1: theoretical analysis (2019). Preprint

    Google Scholar 

  8. V.K. Cao, D. Salas, L. Montastruc, D. Aussel, Optimal design of exchange networks with blind inputs—Part 2: applications to ECO-industrial parks (2019). Preprint

    Google Scholar 

  9. M.A. Ramos, M. Rocafull, M. Boix, D. Aussel, L. Montastruc, S. Domenech, Utility network optimization in eco-industrial parks by a multi-leader follower game methodology. Comput. Chem. Eng. 112, 132–153 (2018)

    Article  Google Scholar 

  10. X. Hu, D. Ralph, Using EPECs to model bilevel games in restructured electricity markets with locational prices. Oper. Res. 55(5), 809–827 (2007)

    Article  Google Scholar 

  11. D. Aussel, P. Bendotti, M. Pištěk, Nash equilibrium in pay-as-bid electricity market: Part 1—existence and characterisation. Optimization 66(6), 1013–1025 (2017)

    Article  Google Scholar 

  12. D. Aussel, P. Bendotti, M. Pištěk, Nash equilibrium in pay-as-bid electricity market: Part 2—best response of producer. Optimization 66(6), 1027–1053 (2017)

    Article  Google Scholar 

  13. J.F. Escobar, A. Jofré, Monopolistic competition in electricity networks with resistance losses. Econom. Theory 44(1), 101–121 (2010)

    Article  Google Scholar 

  14. J.F. Escobar, A. Jofré, Equilibrium analysis of electricity auctions (Department of Economics, Stanford University, Stanford, 2008)

    Google Scholar 

  15. D. Aussel, R. Correa, M. Marechal, Electricity spot market with transmission losses. J. Ind. Manag. Optim. 9(2), 275–290 (2013)

    Google Scholar 

  16. D. Aussel, M. Červinka, M. Marechal, Deregulated electricity markets with thermal losses and production bounds: models and optimality conditions. RAIRO Oper. Res. 50(1), 19–38 (2016)

    Article  Google Scholar 

  17. E. Allevi, D. Aussel, R. Riccardi, On an equilibrium problem with complementarity constraints formulation of pay-as-clear electricity market with demand elasticity. J. Glob. Optim. 70(2), 329–346 (2018)

    Article  Google Scholar 

  18. R. Henrion, J. Outrata, T. Surowiec, Analysis of M-stationary points to an EPEC modeling oligopolistic competition in an electricity spot market. ESAIM Control Optim. Calc. Var. 18(2), 295–317 (2012)

    Article  Google Scholar 

  19. D. Aussel, A. Svensson, Some remarks about existence of equilibria, and the validity of the EPCC reformulation for multi-leader-follower games. J. Nonlinear Convex Anal. 19(7), 1141–1162 (2018)

    Google Scholar 

  20. H.D. Sherali, A.L. Soyster, F.H. Murphy, Stackelberg-Nash-Cournot equilibria: characterizations and computations. Oper. Res. 31(2), 253–276 (1983)

    Article  Google Scholar 

  21. W. van Ackooij, J. De Boeck, B. Detienne, S. Pan, M. Poss, Optimizing power generation in the presence of micro-grids. Eur. J. Oper. Res. 271(2), 450–461 (2018)

    Article  Google Scholar 

  22. J.-P. Aubin, H. Frankowska, Set-valued Analysis (Springer, Berlin, 2009)

    Book  Google Scholar 

  23. M.B. Lignola, J. Morgan, Existence of solutions to generalized bilevel programming problem, in Multilevel Optimization: Algorithms and Applications (Springer, Berlin, 1998), pp. 315–332

    Book  Google Scholar 

  24. B. Bank, J. Guddat, D. Klatte, B. Kummer, K. Tammer, Non-linear Parametric Optimization (Akademie, Berlin, 1982)

    Book  Google Scholar 

  25. S. Dempe, Foundations of Bilevel Programming (Springer, New York, 2002)

    Google Scholar 

  26. D. Aussel, N. Hadjisavvas, Adjusted sublevel sets, normal operator, and quasi-convex programming. SIAM J. Optim. 16(2), 358–367 (2005)

    Article  Google Scholar 

  27. D. Aussel, J, Dutta, Generalized Nash equilibrium, variational inequality and quasiconvexity. Oper. Res. Lett. 36(4), 461–464 (2008). [Addendum in Oper. Res. Lett. 42 (2014)]

    Google Scholar 

  28. D. Aussel, New developments in quasiconvex optimization, in Fixed Point Theory, Variational Analysis, and Optimization (CRC Press, Boca Raton, 2014), pp. 171–205

    Book  Google Scholar 

  29. J. Wu, L.W. Zhang, A smoothing Newton method for mathematical programs constrained by parameterized quasi-variational inequalities. Sci. China Math. 54(6), 1269–1286 (2011)

    Article  Google Scholar 

  30. J. Wu, L. Zhang, Y. Zhang, An inexact newton method for stationary points of mathematical programs constrained by parameterized quasi-variational inequalities. Numer. Algorithm. 69(4), 713–735 (2015)

    Article  Google Scholar 

  31. J. Outrata, J. Zowe, A numerical approach to optimization problems with variational inequality constraints. Math. Prog. 68(1–3), 105–130 (1995)

    Google Scholar 

  32. J.J. Ye, X.Y. Ye, Necessary optimality conditions for optimization problems with variational inequality constraints. Math. Oper. Res. 22(4), 977–997 (1997)

    Article  Google Scholar 

  33. P.T. Harker, J.-S. Pang, Existence of optimal solutions to mathematical programs with equilibrium constraints. Oper. Res. Lett. 7(2), 61–64 (1988)

    Article  Google Scholar 

  34. J.J. Ye, D.L. Zhu, Q.J. Zhu, Exact penalization and necessary optimality conditions for generalized bilevel programming problems. SIAM J. Optim. 7(2), 481–507 (1997)

    Article  Google Scholar 

  35. J.J. Ye, Constraint qualifications and necessary optimality conditions for optimization problems with variational inequality constraints. SIAM J. Optim. 10(4), 943–962 (2000)

    Article  Google Scholar 

  36. L. Guo, G.-H. Lin, J. Ye Jane, Solving mathematical programs with equilibrium constraints. J. Optim. Theory Appl. 166(1), 234–256 (2015)

    Article  Google Scholar 

  37. Z.-Q. Luo, J.-S. Pang, D. Ralph, Mathematical Programs with Equilibrium Constraints (Cambridge University, Cambridge, 1996)

    Book  Google Scholar 

  38. M. Fukushima, G.-H. Lin, Smoothing methods for mathematical programs with equilibrium constraints, in International Conference on Informatics Research for Development of Knowledge Society Infrastructure, 2004 (ICKS 2004) (IEEE, Silver Spring, 2004), pp. 206–213

    Google Scholar 

  39. A. Ehrenmann, Equilibrium Problems with Equilibrium Constraints and their Application to Electricity Markets. PhD thesis (Citeseer, Princeton, 2004)

    Google Scholar 

  40. D. Aussel, A. Svensson, Towards tractable constraint qualifications for parametric optimisation problems and applications to generalised Nash games. J. Optim. Theory Appl. 182(1), 404–416 (2019)

    Article  Google Scholar 

  41. D. De Wolf, Y. Smeers, A stochastic version of a Stackelberg-Nash-Cournot equilibrium model. Manag. Sci. 43(2), 190–197 (1997)

    Article  Google Scholar 

  42. H. Xu, An MPCC approach for stochastic Stackelberg–Nash–Cournot equilibrium. Optimization 54(1), 27–57 (2005)

    Article  Google Scholar 

  43. V. DeMiguel, M.P. Friedlander, F.J. Nogales, S. Scholtes, A two-sided relaxation scheme for mathematical programs with equilibrium constraints. SIAM J. Optim. 16(2), 587–609 (2005)

    Article  Google Scholar 

  44. S. Scholtes, Convergence properties of a regularization scheme for mathematical programs with complementarity constraints. SIAM J. Optim. 11(4), 918–936 (2001)

    Article  Google Scholar 

  45. A.A. Kulkarni, U.V. Shanbhag, A shared-constraint approach to multi-leader multi-follower games. Set-Valued Var. Anal. 22(4), 691–720 (2014)

    Article  Google Scholar 

  46. M. Hu, M. Fukushima, Existence, uniqueness, and computation of robust Nash equilibria in a class of multi-leader-follower games. SIAM J. Optim. 23(2), 894–916 (2013)

    Article  Google Scholar 

  47. H.D. Sherali, A multiple leader Stackelberg model and analysis. Oper. Res. 32(2), 390–404 (1984)

    Article  Google Scholar 

  48. T. Ichiishi, M. Quinzii, Decentralization for the core of a production economy with increasing return. Int. Econ. Rev., 397–412 (1983)

    Google Scholar 

  49. M. Hu, M. Fukushima, Multi-leader-follower games: models, methods and applications. J. Oper. Res. Soc. Japan 58(1), 1–23 (2015)

    Google Scholar 

  50. A.A. Kulkarni, U.V. Shanbhag, An existence result for hierarchical Stackelberg v/s Stackelberg games. IEEE Trans. Autom. Control 60(12), 3379–3384 (2015)

    Article  Google Scholar 

  51. D. Monderer, L.S. Shapley, Potential games. Games Econom. Behav. 14(1), 124–143 (1996)

    Article  Google Scholar 

  52. F. Facchinei, J.-S. Pang, Finite-Dimensional Variational Inequalities and Complementarity Problems (Springer, New York, 2007)

    Google Scholar 

  53. A. Printezis, A. Burnetas, G. Mohan, Pricing and capacity allocation under asymmetric information using Paris metro pricing. Int. J. Oper. Res. 5(3), 265–279 (2009)

    Article  Google Scholar 

  54. W. Jia, S. Xiang, J. He, Y. Yang, Existence and stability of weakly Pareto-Nash equilibrium for generalized multiobjective multi-leader–follower games. J. Global Optim. 61(2), 397–405 (2015)

    Article  Google Scholar 

  55. L. Mallozzi, R. Messalli, Multi-leader multi-follower model with aggregative uncertainty. Games 8(3), Paper No. 25, 14 (2017)

    Google Scholar 

  56. D. Aussel, L. Brotcorne, S. Lepaul, L. von Niederhäusern, A trilevel model for best response in energy demand-side management. Eur. J. Oper. Res. 281(2), 299–315 (2020)

    Article  Google Scholar 

  57. D. Aussel, S. Lepaul, L. von Niederhäusern, A multi-leader-follower game for energy demand-side management (2019). Preprint

    Google Scholar 

  58. D. Aussel, G. Bouza, S. Dempe, S. Lepaul, Genericity analysis of multi-leader-follower games (2019). Preprint

    Google Scholar 

Download references

Acknowledgements

This research benefited from the support of the FMJH Program Gaspard Monge in optimization and operation research, and from the support to this program from EDF. The second author was also benefited by a CONICYT grant CONICYT-PFCHA/Doctorado Nacional/2018 N21180645

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Didier Aussel .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Aussel, D., Svensson, A. (2020). A Short State of the Art on Multi-Leader-Follower Games. In: Dempe, S., Zemkoho, A. (eds) Bilevel Optimization. Springer Optimization and Its Applications, vol 161. Springer, Cham. https://doi.org/10.1007/978-3-030-52119-6_3

Download citation

Publish with us

Policies and ethics