On the Complexity of the Bilevel Shortest Path Problem

ABSTRACT We introduce a new bilevel version of the classic shortest path problem and completely characterize its computational complexity with respect to several problem variants. In our problem, the leader and the follower each control a subset of the edges of a graph and together aim at building a path between two given vertices, while each of the two players minimizes the cost of the resulting path according to their own cost function. We investigate both directed and undirected graphs, as well as the special case of directed acyclic graphs. Moreover, we distinguish two versions of the follower's problem: Either they have to complete the edge set selected by the leader such that the joint solution is exactly a path or they have to complete the edge set selected by the leader such that the joint solution is a superset of a path. In general, the bilevel problem turns out to be much harder in the former case: We show that the follower's problem is already NP‐hard here and that the leader's problem is even hard for the second level of the polynomial hierarchy, while both problems are one level easier in the latter case. Interestingly, for directed acyclic graphs, this difference turns around, as we give a polynomial‐time algorithm for the first version of the bilevel problem, but it stays NP‐hard in the second case. Finally, we consider restrictions that render the problem tractable. We prove that, for a constant number of leader's edges, one of our problem variants is actually equivalent to the shortest‐‐cycle problem, which is a known combinatorial problem with partially unresolved complexity status. In particular, our problem admits a polynomial‐time randomized algorithm that can be derandomized if and only if the shortest‐‐cycle problem admits a deterministic polynomial‐time algorithm.