# Quadratic Optimization with Switching Variables: The Convex Hull for n=2

We consider quadratic optimization in variables (x,y), 0 <= x <= y, where x is an n-vector of continuous variables and the components of y are binary. Such binary y are commonly referred to as indicator or switching variables and occur commonly in applications. One approach to such problems is based on representing or approximating the convex hull of the set {(x,xx',yy') : 0 <= x <= y, y binary}. A representation for the case n=1 is known and has been widely used. We give an exact representation for the case n=2 by starting with a disjunctive representation for the convex hull and then eliminating auxiliary variables and constraints that do not change the projection onto the original variables. An alternative derivation for this representation leads to an appealing conjecture for a simplified representation of the convex hull for n=2 when the product term y(1)*y(2) is ignored.

## Citation

Working paper, Department of Business Analytics, University of Iowa, Iowa City IA, 52242 USA, February 9, 2020.