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We propose an augmented Lagrangian-type algorithm for the solution ofgeneralized Nash equilibrium problems (GNEPs). Specifically, we discuss theconvergence properties with regard to both feasibility and optimality of limitpoints. This is done by introducing a secondary GNEP as a new optimalityconcept. In this context, special consideration is given to the role ofsuitable constraint qualifications that take into account the particularstructure of GNEPs. Furthermore, we consider the behaviour of the method forjointly-convex GNEPs and describe a modification which is tailored towards thecomputation of variational equilibria. Numerical results are included toillustrate the practical performance of the overall method.

Augmented Lagrangian Methods for the Solution of Generalized Nash Equilibrium Problems