AdONE Seminar: Prof. Martin Schmidt (Trier University)

Bilevel Optimization: Some Basics, the European Gas Market and Uncertainty, and an Open Research Problem

In this talk, we will give an introduction to the field of bilevel optimization and first focus on the main properties of bilevel problems and how to solve them. By doing so, we will see why this class of problems is very important for practice but we will also see why they are very challenging - both from a theoretical and from a practical point of view. Afterward, we discuss a recent application of bilevel optimization to model the European gas market under uncertainty as well as present and discuss some exemplary results. The combination of multilevel and uncertainty modeling leads to a rather novel class of bilevel problems for which we, in the end, pose the open research question on whether they can be solved on a computer anyway.