Discrete models for competitive location with foresight

Research output: Contribution to journalArticle

84 Citations (Scopus)

Abstract

We adapt the competitive location model based on maximal covering to include the knowledge that a competitor will enter the market later with a single new facility. The objective is to locate facilities under a budget constraint in order to maximise the
remaining market share after the competitor's later entry.

We develop mixed zero-one programming formulations for each of the following three strategies: the maxmin strategy where the worst possible competitor choice is considered, the minimum regret strategy, and the von Stackelberg strategy in which the competitor also optimises its market share.
Some computational results show the feasibility and limits of these models.
Original languageEnglish
Pages (from-to)683-700
Number of pages18
JournalComputers and Operations Research
Volume35
Issue number3
Publication statusPublished - 2008

Bibliographical note

Computers and Operations Research, to appear

Keywords

  • Competitive location
  • Maxmin
  • Minimum regret
  • Bilevel programming
  • Mixed integer programming

Fingerprint Dive into the research topics of 'Discrete models for competitive location with foresight'. Together they form a unique fingerprint.

Cite this