A bi-level issue arises in real life situations whenever a decentralised or hierarchical decision needs to be made. In these types of situations, multiple parties make decisions one after the other, which influences their respective profit.
Till now, the only solution to solve bi-level problems is through heuristic methods for realistic sizes. However, attempts are being made for improving these optimal methods to compute an optimal solution for real problems as well.
Bi-level optimization problems can come up in practice whenever decentralised or hierarchical decisions have to be made. In these problems, several parties take decisions after each other, which influence their respective profit. So far Bilevel problems are only heuristically solvable for realistic sizes. We are trying to improve the optimal methods to get optimal solutions for real problems, as well.