Optimization Workshop Notes for Mathematical Programming with Equilibrium Constraints (MPECs): Verification of MPEC Hypotheses

Abstract

In this workshop, we present a compact but rigorous introduction to the basic language of nonlinear programming, variational inequalities, and complementarity systems. The goal is twofold. First, we explain the mathematical logic of hypotheses under which first-order optimality conditions for MPECs become valid. Second, we explain how to use that theory in research practice: how to classify a model, choose the appropriate verification route, prove the right hypotheses, and derive a correct first-order analysis.