Article ID: | iaor20001830 |
Country: | Netherlands |
Volume: | 112 |
Issue: | 2 |
Start Page Number: | 427 |
End Page Number: | 431 |
Publication Date: | Jan 1999 |
Journal: | European Journal of Operational Research |
Authors: | Soismaa Margareta |
Keywords: | bilevel programming |
The solutions of linear bilevel programming problems frequently are non-Pareto-optimal. The potential increase in payoffs generated by Pareto improvements makes it worthwhile to consider methods with which to move the solution to the efficient frontier. Bargaining models offer one class of solutions, which, contrary to the original non-cooperative, sequential decision-making situation, however, assume cooperation. We make an attempt to maintain the original power structure by introducing the asymmetric Nash bargaining solution.