AnO(n2) active set method for solving a certain parametric quadratic program

AbstractThis paper presents anO(n2) method for solving the parametric quadratic program $$\min (1/2)x'Dx - a'x + (\lambda /2)\left( {\sum\limits_{j = 1}^n {\gamma _j x_j } - c} \right)^2 ,$$ having lower and upper bounds on the variables, for all nonnegative values of the parameter λ. Here,D is a positive diagonal matrix,a an arbitraryn-vecotr, each γj,j=1, ...,n, andc are arbitrary scalars. An application to economics is also presented.