ALOP-Colloquium with Mathieu Besançon

 

Bilevel optimization studies problems where the optimal response to a second mathematical optimization problem is integrated in the constraints. We introduce near-optimal robustness for bilevel problems, protecting the upper-level decision-maker from bounded rationality at the lower level. This model finds a corresponding and intuitive interpretation in various situations cast as bilevel optimization problems. We develop a duality-based solution method for cases where the lower level is convex, leveraging the methodology from robust and bilevel literature.