Global Optimization from Concave Minimization to Concave Mixed Variational Inequality
Le Dung Muu
,
Nguyen Van Quy
We use techniques from global optimization to develop an algorithm for finding a global solution of nonconvex mixed variational inequality problems involving separable DC cost functions. In contrast to the convex mixed variational inequality, in these problems, a local solution may not be a global one. The proposed algorithm uses the convex envelope of the separable cost function over boxes to approximate a DC cost problem with a convex cost one that can be solved by available methods. To obtain better approximate solutions, the algorithm uses an adaptive rectangular bisection which is performed only in the space of concave variables. The algorithm is applied to solve the Nash-Cournot and Bertrand equilibrium models with logarithm and quadratic concave costs. Computational results on a lot number of randomly generated data show that the proposed algorithm is efficient for these models, when the number of the concave cost functions is moderate, while the size of the model may be much larger.
Viện Toán học, Viện Hàn lâm Khoa học và Công nghệ Việt Nam
Địa chỉ: Số 18 đường Hoàng Quốc Việt, quận Cầu Giấy, Hà Nội
Điện thoại: 024 37563474 - Fax: 024 37564303
Email: vientoan@math.ac.vn
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