Kis, Tamás and Kovács, András and Mészáros, Csaba (2025) Robust bilevel optimization: algorithms, complexity and application. OPTIMIZATION: A JOURNAL OF MATHEMATICAL PROGRAMMING AND OPERATIONS RESEARCH, 74 (12). pp. 2951-2990. ISSN 0233-1934 10.1080/02331934.2025.2468405

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Abstract

The paper addresses robust bilevel optimization with polyhedral uncertainty in the followers' objective function coefficients. It is assumed that both the leader's and the followers' models are linear, yet, bilinear terms in the followers' objective function are allowed. An efficient algorithm is introduced that finds a bounded-error solution in a finite number of steps. This model captures typical price setting applications, such as network toll setting or electricity tariff optimization for demand response management. The efficiency of the general method is illustrated on demand response management in smart grids. Our computational experiments show that the method solves instances with hundreds of decision variables. The significance of these results is underlined by a proof that the above demand response management problem, and hence, the generic robust bilevel problem as well, are (Formula presented.) -complete. Finally, the infinitely robust variant of the problem is discussed, and it is shown to be tractable in polynomial time. © 2025 Informa UK Limited, trading as Taylor & Francis Group.

Item Type:	Article
Uncontrolled Keywords:	Computational complexity; Robust optimization; Bilevel programming; electricity pricing; Demand response management;
Subjects:	Q Science > QA Mathematics and Computer Science > QA75 Electronic computers. Computer science / számítástechnika, számítógéptudomány
Divisions:	Research Laboratory on Engineering & Management Intelligence Research Laboratory on Engineering & Management Intelligence > Research Group of Operations Research and Decision Systems
SWORD Depositor:	MTMT Injector
Depositing User:	MTMT Injector
Date Deposited:	22 Jan 2026 10:52
Last Modified:	22 Jan 2026 10:52
URI:	https://eprints.sztaki.hu/id/eprint/11083

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