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G-94-12

The Discrete Linear Bilevel Programming Problem

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In this paper we analyze some properties of the discrete linear bilevel program for different discretizations of the set of variables. We study the geometry of the feasible set and discuss the existence of an optimal solution. We also establish equivalences between the different classes of discrete linear bilevel programs and particular linear multilevel programming problems. These equivalences are based on concave penalty functions and can be used to design penalty function methods for the solution of discrete linear bilevel programs.

, 20 pages