Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7543514 | Discrete Optimization | 2016 | 30 Pages |
Abstract
The competitive set covering problem is a two-player Stackelberg (leader-follower) game involving a set of items and clauses. The leader acts first to select a set of items, and with knowledge of the leader's action, the follower then selects another subset of items. There exists a set of clauses, where each clause is a prioritized set of items. A clause is satisfied by the selected item having the highest priority, resulting in a reward for the player that introduced the highest-priority selected item. We examine a mixed-integer bilevel programming (MIBLP) formulation for a competitive set covering problem, assuming that both players seek to maximize their profit. This class of problems arises in several fields, including non-cooperative product introduction and facility location games. We develop an MIBLP model for this problem in which binary decision variables appear in both stages of the model. Our contribution regards a cutting-plane algorithm, based on inequalities that support the convex hull of feasible solutions and induce faces of non-zero dimension in many cases. Furthermore, we investigate alternative verification problems to equip the algorithm with cutting planes that induce higher-dimensional faces, and demonstrate that the algorithm significantly improves upon existing general solution method for MIBLPs.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Mehdi Hemmati, J. Cole Smith,