Over the last twenty years, both researchers as well as practitioners have paid a considerable amount of attention to so-called mathematical programs with equilibrium constraints (MPECs). In this talk we consider MPECs where the equilibrium is governed by a variational inequality. We treat the case that the variational inequality is formulated as a generalized equation involving the normal cone mapping to some set given by nonlinear inequalities. In order to characterize optimaliy and stabilty by tools of modern variational analysis, different generalized derivatives of the solution map of the generalized equation are required. These generalized derivatives are well known, if the underlying system of inequalities is sufficiently regular, i.e. the so-called Linear Independence Constraint Qualification (LICQ) is fulfilled. In this talk we present results for the non-regular case, when LICQ is violated. We give a comprehensive description of the graphical derivative and both the regular and the limiting coderivative.
