Applications of Degree Theory to Linear Complementarity Problems

Published Online:https://doi.org/10.1287/moor.18.4.868

In this paper, we consider two applications of degree theory to linear complementarity problems. In the first application, we study the stability of an LCP at a solution point. Specifically we prove the stability of an LCP corresponding to a P0-matrix at an isolated solution. Using a recent degree formula due to Stewart 1991, we strengthen a stability result of Gowda and Pang 1992. In the second application, we use the same degree formula of Stewart to describe the number of solutions of LCP(M, q) when M is a negative almost N-matrix. This analysis leads to a Lipschitzian characterization of the solution map Φ: q ↦ SOL(M, q) corresponding to a nondegenerate negative matrix.

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