Hello Everyone,

I am trying to solve a problem which has two levels. Decision variables in both levels are interacting with each other i.e. decision variable of one level is treated as a parameter for other level and vice-versa. I am solving it individually and feeding output of one level to others. This would be done till an equilibrium exist. After first loop (iteration), I can’t see any variations in the value of decision variables.

Can anyone suggest me what is wrong with this?

For example

**first level**

decision variables are x, Ps, Pb

Constants - a, b kk, kk1

Max Sum(t, z)

z= xy-c

c=Ps*a+Pb*b

subject to constraints

kk<x<kk1

other constraints

**Second Level**

Min sum(t, xy)

decision variables are - y

constant k, k1

subject to constraints

k<y<k1

**Thank You.**