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A bicriteria perspective on L-Penalty Approaches - A corrigendum to Siddiqui and Gabriel's L-Penalty Approach for Solving MPECs

: Dächert, Kerstin; Siddiqui, Sauleh; Saez-Gallego, Javier; Gabriel, Steven A.; Morales, Juan Miguel


Networks and spatial economics 19 (2019), No.4, pp.1199-1214
ISSN: 1566-113X
ISSN: 1572-9427
Journal Article
Fraunhofer ITWM ()

This paper presents a corrigendum to Theorems 2 and 3 in Siddiqui and Gabriel (Netw Spatial Econ 13(2):205–227, 2013). In brief, we revise the claim that their L-penalty approach yields a solution satisfying complementarity for any positive value of L, in general. This becomes evident when interpreting the L-penalty method as a weighted-sum scalarization of a bicriteria optimization problem. We also elaborate further assumptions under which the L-penalty approach yields a solution satisfying complementarity.