Rule Sets Based Bilevel Decision Model

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