On the application of the SCD semismooth* Newton method to variational inequalities of the second kind

Abstract

The paper starts with a description of the SCD (subspace containing derivative) mappings and the SCD semismooth* Newton method for the solution of general inclusions. This method is then applied to a class of variational inequalities of the second kind. As a result, one obtains an implementable algorithm exhibiting a locally superlinear convergence. Thereafter we suggest several globally convergent hybrid algorithms in which one combines the SCD semismooth* Newton method with selected splitting algorithms for the solution of monotone variational inequalities. Finally we demonstrate the efficiency of one of these methods via a Cournot-Nash equilibrium, modeled as a variational inequalities of the second kind, where one admits really large numbers of players (firms) and produced commodities.

arXiv admin note: text overlap with arXiv:2007.11420