Yanikoglu, IhsanKuhn, Daniel2016-10-202016-10-202016-10-20201810.1137/16M1098486https://infoscience.epfl.ch/handle/20.500.14299/130604We study 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.Bilevel programmingStochastic programmingDecision rulestext::journal::journal article::research article