Abstract:
Bilevel decision addresses the problem in which two
levels of decision makers, each tries to optimize their
individual objectives under constraints, act and react in an
uncooperative, sequential manner. Such a bilevel
optimization structure appears naturally in many aspects
of planning, management and policy making. However,
bilevel decision making may involve many uncertain
factors in a real world problem. Therefore it is hard to
determine the objective functions and constraints of the
leader and the follower when build a bilevel decision
model. To deal with this issue, this study explores the use
of rule sets to format a bilevel decision problem by
establishing a rule sets based model. After develop a
method to construct a rule sets based bilevel model of a
real-world problem, an example to illustrate the
construction process is presented.
