Two-Stage Approach for Quantitative Policy Analysis Using Bilevel Programming |
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Authors: | Breiner A Avriel M |
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Institution: | (1) Breiner Consulting, Tivon, Israel;(2) Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Haifa, Israel |
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Abstract: | Quantitative policy analysis problems with hierarchical decision-making can be modeled as bilevel mathematical programming problems. In general, the solution of these models is very difficult; however, special cases exist in which an optimal solution can be obtained by ordinary mathematical programming techniques. In this paper, a two-stage approach for the formulation, construction, solution, and usage of bilevel policy problem is presented. An outline of an example for analyzing Israel's public expenditure policy is also given. |
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Keywords: | Decision-making mathematical models mathematical programming bilevel programming |
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