Article ID: | iaor20126384 |
Volume: | 53 |
Issue: | 2 |
Start Page Number: | 323 |
End Page Number: | 346 |
Publication Date: | Oct 2012 |
Journal: | Computational Optimization and Applications |
Authors: | Bigi Giancarlo, Passacantando Mauro |
Keywords: | programming: nonlinear |
The paper deals with equilibrium problems (EPs) with nonlinear convex constraints. First, EP is reformulated as a global optimization problem introducing a class of gap functions, in which the feasible set of EP is replaced by a polyhedral approximation. Then, an algorithm is given for solving EP through a descent type procedure, which exploits also exact penalty functions, and its global convergence is proved. Finally, the algorithm is tested on a network oligopoly problem with nonlinear congestion constraints.