Yanıkoğlu, İhsanKuhn, D.2018-10-012018-10-0120181052-6234http://hdl.handle.net/10679/5989https://doi.org/10.1137/16M1098486We study two-stage stochastic bilevel programs where the leader chooses a binary here-and-now decision and the follower responds with a continuous wait-and-see decision. Using modern decision rule approximations, we construct lower bounds on an optimistic version and upper bounds on a pessimistic version of the leader's problem. Both bounding problems are equivalent to explicit mixed-integer linear programs that are amenable to efficient numerical solution. The method is illustrated through a facility location problem involving sellers and customers with conflicting preferences.enginfo:eu-repo/semantics/restrictedAccessArticle28119822200042452790000810.1137/16M1098486Bilevel programmingStochastic programmingDecision rules2-s2.0-85049723215