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The Global Search Theory Approach to the Bilevel Pricing Problem in Telecommunication Networks

  • Andrei V. OrlovEmail author
Conference paper
Part of the Springer Proceedings in Mathematics & Statistics book series (PROMS, volume 247)

Abstract

In this paper, we develop new methods of local and global search for finding optimistic solutions to the hierarchical problem of optimal pricing in telecommunication networks. These methods are based on the fact that a bilevel optimization problem can be equivalently represented as a nonconvex optimization problem (with the help of the Karush–Kuhn–Tucker conditions and the penalty approach). To solve the resulting nonconvex problem, we apply the Global Search Theory (GST). Computational testing of the developed methods on a test problem demonstrated workability and efficiency of the approach proposed.

Keywords

Bilevel pricing problem Telecommunication networks KKT-approach Penalty approach Global Search Theory Numerical experiment 

Notes

Acknowledgements

This work has been supported by the Russian Science Foundation (Project no. 15-11-20015).

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Matrosov Institute for System Dynamics and Control Theory of SB RASIrkutskRussia

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