A new solution algorithm for solving rule-sets based bilevel decision problems

Bi-level decision addresses compromises between two interacting decision entities within a given hierarchical complex systems. Bi-level programming typically solves bi-level decision problems. However, formulation of objectives and constraints in mathematical functions is required, which are difficult, and sometimes impossible, in real-world situations due to various uncertainties. Our study develops a rule-set based bi-level decision approach, which models a bi-level decision problem by creating, transforming and reducing related rule sets. This study develops a new rule-sets based solution algorithm to obtain an optimal solution from the bi-level decision problem described by rule sets. A case study and a set of experiments illustrate both functions and the effectiveness of the developed algorithm in solving a bi-level decision problem.