A Bicriteria Perspective on L-Penalty Approaches – a Corrigendum to Siddiqui and Gabriel’s L-Penalty Approach for Solving MPECs

Kerstin Dächert (), Sauleh Siddiqui (), Javier Saez-Gallego (), Steven A. Gabriel () and Juan Miguel Morales ()
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Kerstin Dächert: Fraunhofer Institute for Industrial Mathematics ITWM
Sauleh Siddiqui: Johns Hopkins University
Javier Saez-Gallego: Siemens Wind Power A/S
Steven A. Gabriel: University of Maryland
Juan Miguel Morales: University of Málaga

Networks and Spatial Economics, 2019, vol. 19, issue 4, No 8, 1199-1214

Abstract: Abstract This paper presents a corrigendum to Theorems 2 and 3 in Siddiqui and Gabriel (Netw Spatial Econ 13(2):205–227, 2013). In brief, we revise the claim that their L-penalty approach yields a solution satisfying complementarity for any positive value of L, in general. This becomes evident when interpreting the L-penalty method as a weighted-sum scalarization of a bicriteria optimization problem. We also elaborate further assumptions under which the L-penalty approach yields a solution satisfying complementarity.

Keywords: Equilibrium problems; MPEC; L-penalty method; Bicriteria optimization (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s11067-019-9440-7

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