Solving variational inequality problems via smoothing-nonsmooth reformulations (Q5936069)

The variational inequality problem is defined to determine \(x^*\in X\) such that \[ (x- x^*)^T F(x^*)\geq 0\quad\text{for all }x\in X, \] where \(X\) is a nonempty closed convex subset of \(\mathbb{R}^n\). The problem can be transformed into an equivalent description by using projection operators. When \(X\) is rectangle several globally and locally superlinearly convergent Newton-type solution methods exist. In the paper a solution method is derived for more general constraints. The variational inequality problem is reformulated by smoothing-nonsmooth equations. Newton type methods with stronger convergence properties are derived. Based on these results an algorithm is presented.