Exact Penalization of Generalized Nash Equilibrium Problems

This paper presents an exact penalization theory of the generalized Nash equilibrium problem (GNEP) that has its origin from renowned Arrow–Debreu general economic model. Whereas latter model is foundation much mathematical economics, GNEP provides a multiagent noncooperative competition found many contemporary applications in diverse engineering domains. The most salient feature distinguishes it standard (Nash) game each player’s optimization contains constraints couple all players’ decision variables. Extending results for stand-alone problems, aims to convert into kind without coupled constraints, which known be more readily amenable solution methods and analysis. Starting with illustrative example motivate development, this focuses on two kinds shared (i.e., common) finitely representable. Constraint residual functions associated error bound play important role throughout development.